On August 6, 2024, Fidelity National Information Services Inc (FIS, Financial) released its 8-K filing for the second quarter of 2024. Fidelity National Information Services provides core processing and ancillary services to banks, and has expanded its business over time through acquisitions, including SunGard in 2015 and Worldpay in 2019. However, FIS sold a majority interest in Worldpay and now holds only a minority stake.
Performance Overview
Fidelity National Information Services Inc (FIS, Financial) reported a GAAP diluted earnings per share (EPS) of $0.43 and an adjusted EPS of $1.36 for Q2 2024. The adjusted EPS significantly surpassed the analyst estimate of $1.34. Revenue for the quarter increased by 3% on a GAAP basis and 4% on an adjusted basis to $2.5 billion, aligning closely with the estimated revenue of $2,485.59 million.
Financial Achievements and Challenges
FIS's adjusted EBITDA margin expanded by 110 basis points to 40.1%, driven by cost-saving initiatives and a higher-margin revenue mix. The company repurchased $1.1 billion of shares in the second quarter and announced a new $3 billion share repurchase authorization. These achievements are crucial for maintaining investor confidence and ensuring long-term growth in the competitive financial technology industry.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $2.5 billion | $2.4 billion | 3% |
| Adjusted EBITDA | $998 million | $945 million | 6% |
| Net Earnings (GAAP) | $242 million | $84 million | 188% |
| Adjusted EPS | $1.36 | $0.76 | 79% |
Balance Sheet and Cash Flows
As of June 30, 2024, FIS reported $11.2 billion in outstanding debt. The company generated $546 million in net cash from operating activities and $504 million in adjusted free cash flow during the second quarter. FIS returned $1.3 billion to shareholders through share repurchases and dividends.
Segment Performance
Banking Solutions revenue increased by 3% to $1.7 billion, with an adjusted EBITDA margin expansion of 140 basis points to 44.8%. Capital Market Solutions revenue grew by 7% to $722 million, with an adjusted EBITDA margin expansion of 60 basis points to 50.8%. However, Corporate and Other revenue decreased by 33% to $57 million.
Outlook
FIS has raised its full-year revenue outlook and increased the low-end of its adjusted EBITDA outlook. The company now expects full-year adjusted EPS to be in the range of $5.03 to $5.11, reflecting an 11-month contribution from its equity method investment in Worldpay.
"Our results reflect the continued positive momentum of the business as we delivered on our financial commitments for the sixth consecutive quarter, and are once again raising our full-year outlook," said FIS CEO and President Stephanie Ferris.
For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Fidelity National Information Services Inc for further details.
