Fidelity National Information Services (NYSE:FIS) jumped soon after the bell Tuesday after Morgan Stanley upgraded FIS to overweight from equal weight. Analyst James Faucette said shares are due for a bounce based on “a greater M&A focus, likely derisked numbers, compelling valuation, and a more favorable [venture capital] backdrop.”
Fourth-quarter revenue grew 1%, and full-year 2022 revenue grew 5%
Fourth-quarter GAAP Diluted EPS was $(29.28), and fourth quarter Adjusted EPS decreased 11% to $1.71
Full-year 2022 GAAP Diluted EPS was $(27.68), and full-year 2022 Adjusted EPS increased 2% to $6.65
Fidelity announces first-quarter and full-year 2023 outlook. It also provides update on previously announced Enterprise Transformation Program
The company also separately announces plans to pursue a tax-free spinoff of Merchant Solutions business, and recorded non-cash goodwill impairment charge of $17.6 billion related to Merchant Solutions reporting unit.
Said CEO Stephanie Ferris, “”We delivered fourth quarter results consistent with our expectations in our Banking and Capital Markets businesses. Revenues and margins in our Merchant Solutions business came under slightly more pressure than anticipated as a result of increasing recessionary impacts in the U.K. and a shifting of consumer spend from goods to services in the U.S.
“2023 marks a year of recommitment for FIS, recommitting to our strengths in delivering on our cloud-native and digitally-focused solutions encompassing core, lending, risk, payments and trading platforms to help our clients innovate faster and achieve their growth.”
FIS shares hiked $1.90, or 2.9%, to $67.90.