Fidelity National Information Services Second Quarter Sales Flat

Fidelity National Information Services (FIS) unveiled fresh guidance on Tuesday as it posted growth in its adjusted earnings which surpassed analysts’ estimates and revenue which was in line as divestitures partially offset growth in continuing operations.

The Jacksonville, Fla.-based company, which completed its acquisition of Worldpay on July 31 this year, reported revenue of $2.11 billion in the three months ended June 30, which was broadly in line with the corresponding quarter of the prior year. The result also matched the consensus estimate of analysts polled by Capital IQ for $2.11 billion.

The result was driven by solid growth in the company’s continuing operations which was partially offset by the impact of divestitures in 2018. Revenue within the unit referred to by the company as “corporate and other” fell by 18% to $68 million compared to $83 million in the prior-year quarter, driven primarily by divestiture of the Certegy Check Services business in the third quarter of 2018.

The lion’s share of revenue came from the integrated financial solutions unit, which generated revenue of $1.18 billion, up from $1.12 billion a year earlier.

Adjusted earnings per share rose by 9% to $1.78, also matching analysts’ mean estimate.

“We are very pleased with our strong quarter, which was underpinned by robust sales and continued operational execution,” Gary Norcross, chief executive of Fidelity National Information Services, said. “Our recent closing of the Worldpay acquisition is a demonstrable proof point in our overall growth strategy. We are confident that our focus on innovating with purpose to advance the way the world pays, banks and invests will continue to deliver long-term value to our clients and shareholders.”

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