: FIS stock rallies after earnings beat

Fidelity National Information Services Inc.’s stock FIS was ticking 4% higher in Thursday’s premarket action after the financial-services company topped earnings and revenue expectations for the first quarter, while upping its full-year forecast. The company recorded net income of $140 million, or 24 cents a share, compared with $120 million, or 20 cents a share, in the year-earlier quarter. On an adjusted basis, FIS earned $1.29 a share, down from $1.47 a share a year before, while the FactSet consensus was for $1.21 a share. Revenue inched up to $3.51 billion from $3.49 billion, while analysts had been looking for $3.41 billion. The company saw a 2% rise in banking solutions revenue, while merchant solutions revenue fell by 1%. FIS announced earlier this year that it plans to spin off its merchant business. The company “continues to make progress” on the spinoff and continues to expect that it will be complete by early in 2024. For the second quarter, FIS expects $3.675 billion to $3.725 billion in revenue, along with $1.45 to $1.50 in adjusted earnings per share. The FactSet consensus was for $3.652 billion in revenue and $1.48 in adjusted earnings per share. For the full year, FIS now expects $14.285 billion to $14.535 billion in revenue and $5.76 to $6.06 in adjusted earnings per share. The company’s prior forecast was for $14.200 billion to $14.450 billion in revenue and $5.70 to $6.00 in adjusted EPS. The FactSet consensus was for $14.410 billion in full-year revenue along with adjusted EPS of $5.90. FIS shares have declined 19% so far this year as the S&P 500 SPX has moved 6% higher.

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