Fidelity National Information Services Inc (FIS) Reports 3% Revenue Increase in Q3 2023 and ...
FIS reports a 3% increase in GAAP revenue for continuing operations, reaching $2.5 billion in Q3 2023.
Adjusted EBITDA margin expanded by 70 basis points to 43.0%.
The company announces plans to repurchase approximately $500 million of shares in Q4 2023.
FIS raises its full-year 2023 outlook and introduces outlook for continuing operations.
On November 7, 2023, Fidelity National Information Services Inc (NYSE:FIS) released its third quarter 2023 results, demonstrating continued positive business momentum. The company reported a 3% increase in GAAP revenue for continuing operations, reaching $2.5 billion. The adjusted EBITDA margin expanded by 70 basis points to 43.0%. FIS also announced plans to resume share repurchases in the fourth quarter of 2023, reflecting confidence in the business and a strengthening financial position.
Financial Highlights
For the third quarter of 2023, FIS reported GAAP net earnings attributable to common stockholders for continuing operations of $260 million or $0.44 per diluted share. On an organic basis, revenue increased by 4% compared to the prior-year period, reaching approximately $2.5 billion. Adjusted net earnings for continuing operations were approximately $560 million, and adjusted EPS decreased by 7% compared to the prior-year period to $0.94 per diluted share, primarily reflecting higher interest costs.
Segment Performance
The Banking Solutions segment reported a 3% increase in revenue on both a GAAP and organic basis compared to the prior-year period, reaching $1.8 billion. The Capital Market Solutions segment reported a 7% increase in GAAP revenue and a 6% increase on an organic basis compared to the prior-year period, reaching $677 million. The Corporate and Other segment reported a 29% decrease in revenue compared to the prior-year period, reaching $56 million.
Capital Allocation and Outlook
FIS remains committed to shareholder returns and plans to repurchase approximately $500 million of shares in the fourth quarter of 2023, as part of its broader goal to repurchase at least $3.5 billion of shares by year-end 2024. The company has raised its outlook range for the full year 2023, with revenue expected to be between $14,600 - $14,650 million and adjusted EBITDA between $6,100 - $6,150 million.
Future Plans
FIS is on track to close the pending Worldpay transaction in Q1 2024. The company also plans to resume share repurchases in the fourth quarter of 2023, ahead of the transaction close, reflecting confidence in the business and a strengthening financial position.
Explore the complete 8-K earnings release (here) from Fidelity National Information Services Inc for further details.
This article first appeared on GuruFocus.
