Core Viewpoint - Fidelity National Information Services, Inc. (FIS) is experiencing strong segment performance, international market presence, collaborations, and solid cash flow generation abilities [1] Financial Performance - FIS currently holds a Zacks Rank 3 (Hold) and has seen a stock gain of 4.9% in the past month, contrasting with a 4.7% decline in the industry [2] - The Zacks Consensus Estimate for FIS' 2025 earnings is $5.74 per share, reflecting a year-over-year improvement of 10%, with revenues estimated at $10.5 billion, a 3.3% increase from 2024 [5] - For 2026, the earnings estimate is $6.28 per share, indicating a rise of 9.5% from 2025, with revenues projected at $10.9 billion, a 4.6% increase from 2025 [6] - The earnings estimate for 2025 has been revised upward by 0.3% in the past 30 days [8] - FIS has outperformed earnings estimates in each of the trailing four quarters, with an average surprise of 9.35% [9] Business Growth Drivers - FIS is experiencing solid revenue growth, with a 4% year-over-year increase in 2024, driven by strong performances in its Banking Solutions and Capital Market Solutions segments [10] - The company employs a combination of organic growth strategies and strategic acquisitions to secure long-term recurring contracts, focusing on advanced technology solutions and targeted marketing campaigns [11] - FIS introduced Treasury GPT, an AI-powered product support tool, in March 2025 to enhance efficiency in treasury management [11] - Strategic partnerships, such as the collaboration with Affirm, aim to broaden FIS' product offerings and enhance customer solutions [12] - The accelerating pace of digital transformation presents significant growth opportunities for FIS, supported by ongoing investments in product innovation and infrastructure improvements [13] Cash Flow and Shareholder Value - FIS generated $2.2 billion in operating cash flow during 2024, representing a 4.7% year-over-year increase, and maintains a dividend yield of 2.2%, higher than the industry average of 0.7% [14]

Company Overview - Fidelity National Information Services, Inc. (FIS) provides banking and payments technology solutions, processing services, and information-based services to the financial services industry. The company was formed following a merger with Certegy Inc. in 2006 [12]. Zacks Rank and Style Scores - FIS currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment potential [13]. - The Momentum Style Score for FIS is B, with shares having increased by 7.1% over the past four weeks, suggesting positive momentum [13]. - For fiscal 2025, eight analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.02 to $5.74 per share [13]. Investment Considerations - FIS has an average earnings surprise of 9.4%, which may indicate a potential for exceeding earnings expectations [13]. - Given its solid Zacks Rank and favorable Momentum and VGM Style Scores, FIS is recommended to be on investors' short lists for potential investment opportunities [14].

Company Overview - Fidelity National Information Services, Inc. (FIS) provides banking and payments technology solutions, processing services, and information-based services to the financial services industry [11] - The company was formed following a merger with Certegy Inc. in 2006, which specialized in credit card and transaction processing services [11] Investment Ratings - FIS currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a strong overall rating [12] - The Value Style Score for FIS is B, supported by a forward P/E ratio of 12.13, making it attractive for value investors [12] Earnings Estimates - In the last 60 days, six analysts have revised their earnings estimates upwards for FIS, with the Zacks Consensus Estimate increasing to $5.72 per share [12] - FIS has demonstrated an average earnings surprise of 9.4%, indicating a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and strong Value and VGM Style Scores, FIS is recommended for investors' consideration [13]

Financial Performance - Total consolidated revenue for 2024 reached $10,127 million, a 3% increase from $9,831 million in 2023 and a 4.2% increase from $9,720 million in 2022[20] - Banking Solutions segment generated $6,892 million in revenue for 2024, up 2.2% from $6,743 million in 2023 and 4.0% from $6,625 million in 2022[20] - Capital Market Solutions revenue increased to $2,979 million in 2024, representing a 7.7% growth from $2,766 million in 2023 and a 13.2% increase from $2,631 million in 2022[20] - Corporate and Other segment revenue decreased to $256 million in 2024, down 20.5% from $322 million in 2023 and 44.8% from $464 million in 2022[20] Strategic Initiatives - The company continues to invest in core modernization efforts to enhance its offerings and maintain competitive advantage in the market[22] - Digital banking capabilities have expanded significantly, providing financial institutions with integrated solutions that improve customer experience across multiple channels[22] - The company is focused on enhancing its fraud, risk management, and compliance solutions, utilizing advanced technologies such as artificial intelligence and predictive analytics[24] - Capital Markets segment clients benefit from investments in modern platforms and advanced technologies, including machine learning and regulatory technology[25] - The company plans to wind down or sell certain non-strategic businesses within the Corporate and Other segment, which includes corporate overhead expenses[26] Regulatory Compliance - The company is subject to a broad range of complex federal, state, and international regulations, including the Dodd-Frank Act and the Bank Secrecy Act, which may impact its operations and compliance costs[34] - The company’s U.S.-based wealth and retirement business is regulated by the Georgia Department of Banking and Finance, which imposes specific compliance requirements[36] - The company’s payment services are overseen by the FFIEC and must comply with various regulations regarding corporate governance, capital requirements, and anti-money laundering[37] - The company is required to develop and implement risk-based anti-money laundering programs and file regulatory reports on large cash transactions and suspicious activities[37] - The company is subject to the E.U.'s GDPR, which imposes stricter standards for data protection and breach reporting, affecting its operations in the E.U.[39] - The company’s broker-dealer subsidiary is registered with the SEC and must adhere to regulations covering all aspects of the securities business, including capital structure and record keeping[40] - The company’s consumer reporting subsidiary, ChexSystems, is regulated under the FCRA, which governs the accuracy and privacy of consumer information[43] - The company has made significant investments to maintain high security levels for consumer data and ensure compliance with privacy laws[43] - The company is subject to oversight by various international regulatory bodies, including the FCA in the U.K., impacting its operations outside the U.S.[42] - The company’s compliance with evolving privacy and data protection laws globally continues to grow in complexity and cost[38] Workforce and Employment - As of December 31, 2024, the company had over 50,000 employees, with more than 32,000 employed outside the U.S.[45] - Approximately 6,000 employees, primarily in Brazil and Europe, are represented by labor unions or works councils as of December 31, 2024[45] - The company continues to operate FIS Cares, a global employee-funded giving program to support employees in times of need[47] Mergers and Acquisitions - The company completed the Worldpay Sale in January 2024, retaining a 45% equity interest, which may expose it to new operational risks[117] - The anticipated strategic, financial, and operational gains from the Worldpay Sale may not materialize, potentially leading to revenue dis-synergies[117] - The company is subject to various legal proceedings, including class-action cases and patent infringement litigation, which could adversely affect its financial condition[112] Financial Risks - The enactment of the EU's Pillar Two Directive establishes a minimum effective tax rate of 15%, which could impact the company's tax expense[113] - The company faces significant competition for talent, particularly in senior management and technology personnel, which could affect its growth[108] - The company operates in emerging markets that may experience significant economic volatility, adding uncertainty to future revenue and earnings[105] - Compliance with anti-bribery and anti-corruption laws is critical, as violations could result in penalties and adversely affect the company's operations[102] - As of December 31, 2024, goodwill totaled $17.3 billion, representing 51% of total assets, while intangible assets amounted to $1.3 billion, or 4% of total assets[122] - Total debt as of December 31, 2024, was approximately $11.3 billion, which may limit operational flexibility and increase borrowing costs[123] - The company has approximately €4.0 billion in Euro-denominated senior notes and €0.1 billion in Euro-denominated commercial paper, equivalent to about $4.3 billion[124] - Rising interest rates could increase the cost of refinancing existing debt and incurring new debt, adversely affecting financing costs[126] - The company maintains investment grade credit ratings (S&P BBB, Moody's Baa2, Fitch BBB) which are crucial for cost of funds and liquidity[127] Forward-Looking Statements and Risks - Forward-looking statements include expectations about financial outcomes, market conditions, and strategic plans, but are subject to risks and uncertainties[128] - The company faces risks related to potential impairments of goodwill and intangible assets due to economic downturns or underperformance[122] - Integration of acquired businesses may incur significant unanticipated costs and challenges, impacting strategic objectives[120] - The company is exposed to cybersecurity risks associated with acquired systems and businesses[120] - There is a risk of significant liabilities arising from acquisitions or divestitures that may exceed indemnification provisions[120]

Core Insights - Fidelity National Information Services (NYSE: FIS) experienced a significant stock performance decline of 11% following weak Q4 earnings results and guidance after a strong year where the stock had increased by 30% [1] Group 1 - The stock had been a solid performer over the past year, adding 30% [1] - The abrupt halt in the stock's strong run occurred on Tuesday due to disappointing Q4 earnings results [1] - The analyst downgraded shares based on the recent performance and outlook [1]

Core Viewpoint - The article compares Fidelity National Information Services (FIS) and Shift4 Payments (FOUR) to determine which stock is more attractive to value investors [1] Valuation Metrics - FIS has a forward P/E ratio of 12.75, while FOUR has a forward P/E of 26.04 [5] - FIS has a PEG ratio of 0.56, indicating better value relative to its expected earnings growth compared to FOUR's PEG ratio of 1.01 [5] - FIS has a P/B ratio of 2.51, significantly lower than FOUR's P/B of 9.90, suggesting FIS is undervalued relative to its book value [6] Earnings Outlook - FIS is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - The Zacks Ranks for FIS and FOUR are 2 (Buy) and 4 (Sell), respectively, indicating a stronger earnings outlook for FIS [3]

Fidelity National Information Services, Inc. (FIS) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.40, which beat the Zacks Consensus Estimate by 3.7%. Also, the bottom line increased 48.9% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Revenues grew 3.6% year over year to $2.6 billion. However, the top line missed the consensus mark by 1.3%.Strong fourth-quarter earnings benefited from robust recurring revenue growth in both segments and new sales mo ...

Shares of Fidelity National Information Services plunged the most since 2023 on Tuesday after the company reported quarterly earnings that fell short of Wall Street estimates and issued a disappointing forecast.The stock dropped 12% as of afternoon trading, heading for its biggest drop since March 2023. Here's how the company did, compared to analysts' consensus estimates from LSEG:Earnings per share: $1.40 adjusted vs. $1.36 expectedRevenue: $2.6 billion vs. $2.63 billion expectedRevenue at the fintech com ...

Core Insights - FIS shares declined following fourth-quarter earnings results, with net income forecasts falling short of Wall Street expectations [1][4] - Management highlighted accelerating growth in key segments, particularly Banking Solutions, and announced a partnership with Affirm to enhance debit processing capabilities [2][5] Financial Performance - Banking Solutions revenues increased by 2% year-on-year to $1.7 billion, while Capital Markets segment revenues grew by 9% to $821 million [3] - Adjusted earnings projections for the current quarter are between $1.17 and $1.22 per share, below Wall Street's expectation of $1.28 [4] Growth Outlook - The company anticipates adjusted revenue growth of 3.7% to 4.4% for Banking Solutions in the current year, with Capital Markets expected to see gains of 6.5% to 7% [3] - Digital solutions sales grew by 70% year-over-year, with expectations for continued strong momentum in 2025 due to recent acquisitions and a focused sales strategy [5] Strategic Initiatives - The partnership with Affirm aims to integrate pay-over-time solutions into existing debit card programs, showcasing FIS's commitment to innovation [5] - The company is focusing on enhancing digital experiences for financial institutions, with significant investments in both organic growth and acquisitions [6] Market Demand - There is strong demand for digital solutions across the banking sector, with commercial lending also seeing increased interest from various financial entities [6][7] - FIS believes it is uniquely positioned to meet the needs of the office of the CFO, capitalizing on demand from niche players in the market [7]

Financial Data and Key Metrics Changes - In 2024, revenue growth accelerated from 3% to 4%, slightly below expectations due to one-time items [9][12] - Adjusted EPS growth was 18% on a normalized basis, exceeding the full-year outlook [12][39] - Adjusted revenue growth for Q4 was 4%, with adjusted EBITDA margin expanding more than 100 basis points year-over-year [37][39] - Total debt stood at $11.3 billion, with a leverage ratio of 2.65x, better than the stated goal of 2.8x [39] Business Line Data and Key Metrics Changes - Banking revenue grew 2% in Q4, slightly below expectations due to unexpected items impacting revenue growth by around 2 percentage points [42][44] - Capital Markets had a strong quarter with adjusted revenue growth of 9% and recurring revenue growth of 7% [45] - Professional services advanced 16%, aligning with prior expectations for acceleration [44] Market Data and Key Metrics Changes - New sales of digital solutions grew 70% year-over-year in 2024, driven by cross-sales into core clients [16] - The partnership with Affirm aims to enhance debit processing capabilities, tapping into the fast-growing buy now pay later market [18][19] - The office of the CFO represents a global market of over $25 billion with double-digit growth potential [27] Company Strategy and Development Direction - The company is focused on commercial excellence, targeting key growth vectors such as digital, payments, and commercial lending [8][33] - Strategic M&A is being utilized to extend and complement the portfolio of solutions, with five acquisitions completed [31][32] - The company aims to return $2 billion of capital and deliver double-digit total returns to shareholders in 2025 [13][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in accelerating revenue growth in 2025, supported by strong sales momentum and new client wins [14][34] - The company anticipates margin expansion of 40 to 45 basis points in 2025, consistent with prior guidance [49][60] - Management acknowledged challenges in the first quarter but expects a significant pickup in growth in the second quarter [76][135] Other Important Information - The company returned $4.8 billion to shareholders in 2024, including $1.2 billion in Q4 [12][40] - The company experienced a partial system outage but does not expect any material impact on results or operations [81] Q&A Session Summary Question: Follow-up on banking revenue growth cadence - Management indicated that Q1 will be the low point of the year, with expectations for a sharp increase in Q2 [75][76] Question: Impact of technology outage on numbers - Management confirmed that the outage was not a cyberattack and does not expect a material impact on results [81] Question: ACV growth expectations for 2025 - Management is optimistic about exceeding 9% ACV growth in 2025, focusing on digital, payments, and lending sales [86][88] Question: EBITDA margin impact from upcoming ACV deals - Management expects continued focus on cost discipline to support margin expansion despite product mix challenges [90][92] Question: Free cash conversion trends and outlook - Management acknowledged pressures on free cash conversion but is confident in returning to higher levels in the future [101][140] Question: Unpacking Q4 banking growth - Management provided insights into the contributions from Worldpay and M&A, indicating core growth around 3% in Q4 [112]