Fidelity National Information Tumbles On Q4 Revenue Miss, Lackluster Outlook: Details

Fidelity National Information Services, Inc. FIS shares are tumbling on Tuesday after the company reported fourth-quarter results.

Revenue of $2.599 billion, which increased 3% year over year on a GAAP basis, missing the consensus of $2.63 billion.

Banking Solutions revenue increased by 1% Y/Y to $1.72 billion and Capital Market Solutions revenue increased by 9% Y/Y to $821 million.

Adjusted EBITDA margin expanded 103 basis points to 42.9% in the quarter. Adjusted net earnings surged 36% to $754 million in the quarter. Adjusted EPS of $1.40 (+49% Y/Y) beat the street view of $1.36.

As of December 31, debt outstanding totaled $11.3 billion. The company exited the year with cash and equivalents worth $834 million.

In the quarter, the company returned $1.2 billion of capital to shareholders through $1.0 billion of share repurchases and $192 million of dividends paid.

In 2025, the company plans to repurchase around $1.2 billion in shares while maintaining a dividend payout ratio of about 35% of adjusted net earnings (excluding EMI).

On January 30, 2025, the Board approved an 11% increase in the quarterly dividend to $0.40 per share.

Guidance: The company expects FY25 revenue in the range of $10.435 billion to $10.495 billion versus the consensus of $10.6 billion and adjusted EPS of $5.70 – $5.80 against the Street view of $5.72.

FIS projects first-quarter of 2025 revenue of $2.485 billion – $2.510 billion (vs. $2.568 billion est.) and adjusted EPS of $1.17 – $1.22 (vs. $1.28 estimate).

FIS CEO and President Stephanie Ferris said, “2024 was a year of positive momentum for FIS. We successfully completed the Worldpay separation, and made significant progress executing on our Future Forward strategy.”

“Our 2025 outlook reflects acceleration in the business as we look to further build on the foundations laid in 2024 and drive double-digit total returns.”

Apart from this, today, FIS has partnered with Affirm Holdings, Inc. AFRM to offer a pay-over-time solution for debit issuers, enabling FIS’ banking clients to integrate Affirm’s platform into their digital banking and mobile apps.

Investors can gain exposure to the stock via Global X FinTech ETF FINX and Amplify Digital Payments ETF IPAY.

Price Action: FIS shares are trading lower by 16% at $69.47 at the last check Tuesday.

Read Next: