Lori Moffett | Bloomberg | Getty Images
Stocks Fidelity National Information Services It’s been the hottest since 2023, after the company reported quarterly revenue that had not reached Wall Street estimates and issued disappointing forecasts.
Stocks fell 12% during afternoon trading, heading towards its biggest decline since March 2023.
Compared to the analyst consensus estimates from LSEG, the company’s method is as follows:
Earnings per share: $1.40 adjusted vs. $1.36 forecast: $2.6 billion vs. $2.63 billion
In a statement Tuesday, FIS said fintech company revenues rose 3.5% from $2.5 billion a year ago. Net income jumped almost five times to $344 million, or 56 cents per share, from $62 million a year ago, or 10 cents per share.
According to FIS, its current quarter revenues ranged from $2.49 billion to $2.51 billion, with full-year revenues of $10.444 billion to $10.5 billion. Analysts were expecting a first quarter of $2.56 billion and revenue of $10.6 billion.
In a revenue call, CEO Stephanie Ferris said the company “missed its own estimate for growth due to one-off items” for 2024. She said that “growth of new sales” and stronger relationships with clients “will give us confidence in the further acceleration of 2025.”
FIS said new digital solutions sales in 2024 increased 70% year-on-year.
FIS stocks are classified as earnings errors
The company has raised its stock buyback target from $800 million to $1.2 billion as part of its commitment to returning excess cash to shareholders.
Separately on Tuesday, FIS announced a new partnership with online lenders positiveProvides debit services to bank clients. Through the arrangement, banks affiliated with FIS can offer their own version of AFFIRM cards without having to ask their customers to adopt new plastics.
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