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Fidelity National Information Services (NYSE:FIS) stock dropped 10% in Thursday premarket trading after the company lowered its full-year guidance for earnings and revenue again following weaker-than-expected third-quarter results.
FIS, which provides technology solutions to financial institutions globally, expects adjusted EPS to be $6.60-6.66 in 2022 compared with the prior target range of $7.00-7.10 and the consensus of $7.01. Similarly, revenue is expected to be $14.47B-14.52B vs. prior view of $14.62B-14.70B and consensus of $14.63B.
For the third quarter, adjusted EPS of $1.74 fell slightly short of the average analyst estimate of $1.75 but ticked up from $1.73 at Sept. 30, 2021.
Revenue of $3.6B also missed the $3.61B consensus but gained from $3.51B a year before.
For its Banking Solutions segment, sales rose to $1.68B from $1.61B in the year-ago quarter. Merchant Solutions revenue of $1.18B rose 2% Y/Y, and Capital Market Solutions saw revenue drifting up 3% Y/Y to $671M.
Adjusted EBITDA came in at $1.58B in Q3, down from $1.59B in Q3 2021. Adjusted EBITDA margin of 43.7% vs. 45.2% in Q3 of last year.
Earlier, Fidelity National Non-HGAAP EPS of $1.74 misses by $0.01, revenue of $3.36B misses by $10M.
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As an expert in finance and technology solutions for financial institutions, I can confidently analyze and break down the information provided in the article. My expertise is grounded in a deep understanding of the financial markets, particularly in the context of technology companies like Fidelity National Information Services (NYSE: FIS).
The article discusses FIS's recent performance and the subsequent drop in its stock price. FIS is a key player in providing technology solutions to financial institutions globally, and its stock experienced a 10% decline in premarket trading. This decline was attributed to the company lowering its full-year guidance for both earnings and revenue. Let's delve into the key concepts mentioned in the article:
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Earnings News:
- FIS reported weaker-than-expected third-quarter results, which led to a decrease in its stock value.
- The adjusted earnings per share (EPS) for the third quarter was $1.74, slightly below the average analyst estimate of $1.75.
- FIS lowered its full-year guidance for earnings, with an expected adjusted EPS range of $6.60-6.66 in 2022, down from the prior target range of $7.00-7.10.
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Financials:
- The article provides financial details for FIS, including revenue figures and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
- Revenue for the third quarter was $3.6 billion, missing the consensus estimate of $3.61 billion.
- Full-year revenue guidance was adjusted to $14.47-14.52 billion, lower than the previous range of $14.62-14.70 billion.
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On the Move:
- The phrase "On the Move" suggests a change in the stock price, indicating the 10% drop in FIS stock during premarket trading.
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Fidelity National Information Services (NYSE:FIS):
- FIS is a global provider of technology solutions for financial institutions.
- The company's performance is discussed in terms of adjusted EPS, revenue, and segment-specific details.
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Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
- FIS reported adjusted EBITDA of $1.58 billion in Q3, a decrease from $1.59 billion in the same quarter of the previous year.
- The adjusted EBITDA margin was 43.7%, down from 45.2% in Q3 of the prior year.
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Segment Performance:
- Banking Solutions segment sales rose to $1.68 billion from $1.61 billion in the year-ago quarter.
- Merchant Solutions revenue increased 2% year-over-year to $1.18 billion.
- Capital Market Solutions saw a 3% year-over-year increase in revenue, reaching $671 million.
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Consensus Estimates:
- The article mentions consensus estimates for both adjusted EPS and revenue, providing a benchmark for evaluating FIS's performance against market expectations.
In summary, my expertise allows me to interpret the financial details and market dynamics discussed in the article, providing a comprehensive understanding of Fidelity National Information Services' recent performance and the factors influencing its stock value.
