Fidelity National Information Services, Inc. FIS reported Q2 revenue of $3.746 billion, beating the analyst consensus of $3.700 billion. Revenues inched up by 1% (+2% on an organic basis).
Q2 EPS of $1.55 exceeded the street view of $1.48.
Recurring revenue growth from processing volumes and professional services in banking, increased merchant volumes, and continued strength in Capital Markets aided quarterly performance.
The company recorded a non-cash goodwill impairment charge of $6.8 billion related to the Merchant Solutions reporting unit in the quarter.
Adjusted EBITDA margin contracted by 160 basis points (bps) over the prior-year period to 41.4%.
As of June 30, 2023, outstanding debt totaled $19.5 billion. The company exited the quarter with cash and equivalents worth $4.4 billion.
"As we enter the next chapter of FIS, I'm excited for us to drive greater focus on delivering innovative, next-generation financial technology and software solutions to our clients, and a more simplified, streamlined operational focus for our colleagues and shareholders," said FIS CEO and President Stephanie Ferris.
Guidance
The company expects Q3 revenues in the range of $3.640 billion-$3.690 billion, versus the consensus of $3.58 billion.
FIS sees FY23 revenues of $14.50 billion-$14.631 billion versus the consensus of $14.52 billion. The company's prior 2023 revenue guidance was $14.285 billion - $14.535 billion.
The company plans to present the operating results and cash flows of the Worldpay Merchant Solutions business as discontinued operations beginning Q3 2023.
Price Action: FIS shares are trading lower by 1.36% to $60.24 on the last check Wednesday.
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