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.

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