Fidelity National Information Services Beats Q2 Earnings; Cuts FY23 Outlook

Anusuya Lahiri
1 min read
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In this article:

  • Fidelity National Information Services, Inc (NYSE: FIS) reported second-quarter FY22 revenue growth of 7% year-on-year to $3.72 billion, beating the consensus of $3.67 billion. On an organic basis, revenue grew 8%.

  • Merchant Solutions revenue grew 11% Y/Y to $1.3 billion. Revenue from Banking Solutions rose 5% Y/Y to $1.66 billion, and Capital Market Solutions increased 5% to $663 million.

  • Margin: Adjusted EBITDA margin contracted 70 bps 43%.

  • Adjusted EPS of $1.73 beat the consensus of $1.71.

  • FIS held $1.69 billion in cash and equivalents and generated $1.02 billion in operating cash flow.

  • CFO Transition: Deputy CFO Erik Hoag will succeed James "Woody" Woodall as CFO on November 4.

  • Outlook: FIS sees Q3 revenue of $3.580 billion - $3.635 billion, below the consensus of $3.74 billion. It sees an adjusted EPS of $1.74 - $1.78, below the consensus of $1.91.

  • FIS cut the FY22 revenue outlook to $14.615 billion - $14.700 billion from $14.78 billion - $14.925 billion below the consensus of $14.84 billion. The company cut adjusted EPS to $7.00 - $7.10 from $7.25 - $7.37, below the consensus of $7.26.

  • Price Action: FIS shares traded lower by 7.33% at $96.51 on the last check Thursday.

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