FIS Shares Drop On Q4 Revenue Miss, Cautious Outlook; Boosts Dividend By 20%

  • Fidelity National Information Services Inc FIS reported fourth-quarter FY21 revenue growth of 11% year-on-year to $3.67 billion, trailed the consensus of $3.71 billion. On an organic basis, revenue grew 11%.
  • Merchant Solutions revenue grew 19% Y/Y to $1.19 billion. Revenue from Banking Solutions rose 8% Y/Y to $1.67 billion, and Capital Market Solutions increased 8% to $716 million.
  • Margin: Adjusted EBITDA margin expanded by 120 bps to 46.4%, primarily due to synergies from the Worldpay acquisition and high contribution margins from revenue growth.
  • Adjusted EPS of $1.92 beat the consensus of $1.90.
  • FIS held $2 billion in cash and equivalents and generated $961 million in operating cash flow.
  • Dividend: FIS looks to raise its annual dividend by 20% annually, beginning with the quarterly dividend payable in March 2022.
  • Outlook: FIS sees Q1 revenue of $3.42 billion - $3.45 billion, below the consensus of $3.49 billion. It sees Q1 adjusted EPS of $1.44 - $1.47, below the consensus of $1.56.
  • FIS sees FY22 revenue of $14.78 billion - $14.925 billion versus the consensus of $14.92 billion. The company sees FY22 adjusted EPS of $7.25 - $7.37 against the consensus of $7.29.
  • Price Action: FIS shares traded lower by 7.09% at $103.59 in the premarket on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceDividendsMoversTechTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!