Shares of Fidelity National Information Services (FIS) fell 1.1% to $40.94 in pre-market trading on Tuesday, as the payment processing firm revised down its full-year financial outlook.
The company reduced its annual adjusted earnings per share (EPS) guidance to a range of $6.15 to $6.24, down from the prior estimate of $6.22 to $6.32. Annual revenue projections were also lowered to $13.63 billion to $13.70 billion, from $13.77 billion to $13.85 billion previously. The Capital Markets segment’s revenue growth forecast was cut to 3%–3.5%, compared with the prior outlook of 5.5%.
FIS reported adjusted EPS of $1.48 for the second quarter, one cent above the consensus estimate, while revenue totaled $3.38 billion, in line with expectations. The company’s Q2 results were released on August 4.
Analysts at Wells Fargo downgraded FIS to equal weight from overweight, setting a target price of $46. Wolfe Research maintained its outperform rating but raised its target to $54 from $53. Of 28 analysts covering the stock, 14 recommend buying, 13 suggest holding, and one advises selling.
The decline in FIS shares occurred amid a broader market rally, with the S&P 500 up 0.5% and the Nasdaq gaining nearly 1.0% at the time of the stock’s drop. The company’s guidance cut follows similar headwinds faced by rival payments processor Fiserv in recent weeks.
