- Fidelity National Information Services, Inc (NYSE:FIS) reported first-quarter FY21 revenue growth of 8% year-on-year to $3.49 billion, beating the consensus of $3.44 billion. On an organic basis, revenue grew 9%.
- Merchant Solutions revenue grew 15% Y/Y to $1.11 billion. Revenue from Banking Solutions rose 7% Y/Y to $1.65 billion, and Capital Market Solutions increased 5% to $658 million.
- Margin: Adjusted EBITDA margin was flat at 40.6% as it successfully offset rising wage inflation, comparisons created by stimulus-related revenue in the prior-year period, and ramping large client wins.
- Adjusted EPS of $1.47 beat the consensus of $1.45.
- FIS held $3.7 billion in cash and equivalents and generated $896 million in operating cash flow.
- "FIS is off to a strong start to the year," Chair and CEO Gary Norcross said. "We chose to continue to invest in new solutions and capabilities to benefit our clients throughout the pandemic."
- In 2022, the company expects to repurchase shares worth $3 billion, primarily during the second half.
- Dividend: FIS recently raised its quarterly dividend by 21% Y/Y to $0.47 per share, payable on June 24, 2022, to shareholders of record on June 10, 2022.
- Outlook: FIS sees Q2 revenue of $3.65 billion - $3.685 billion, below the consensus of $3.69 billion. It sees Q1 adjusted EPS of $1.72 - $1.75, versus the consensus of $1.75.
- FIS reiterated the FY22 revenue outlook of $14.78 billion - $14.925 billion versus the consensus of $14.84 billion. The company sees FY22 adjusted EPS of $7.25 - $7.37 against the consensus of $7.29.
- Price Action: FIS shares traded higher by 1.44% at $98.90 on the last check Tuesday.
