FIS shares plunge on Q4 2024 earnings

Shares of Fidelity National Information Services plunged the most since 2023 on Tuesday after the company reported quarterly earnings that fell short of Wall Street estimates and issued a disappointing forecast.

The stock dropped 12% as of afternoon trading, heading for its biggest drop since March 2023.

Here’s how the company did, compared to analysts’ consensus estimates from LSEG:

• Earnings per share: $1.40 adjusted vs. $1.36 expected
• Revenue: $2.6 billion vs. $2.63 billion expected

Revenue at the fintech company increased 3.5% from $2.51 billion a year earlier, FIS said in a statement on Tuesday. Net income jumped almost fivefold to $304 million, or 56 cents per share, from $62 million, or 10 cents per share, a year earlier.

FIS said revenue in the current quarter will be between $2.49 billion and $2.51 billion, and sales for the full year will be between $10.44 billion and $10.5 billion. Analysts were expecting revenue for the first quarter of $2.56 billion and $10.6 billion for the year.

On the earnings call, CEO Stephanie Ferris said the company missed its own estimates for growth in 2024 “due to some one-time items.” She said “growth in new sales” and stronger relations with clients “leave us confident in further acceleration in 2025.”

FIS said new sales of digital solutions increased 70% year over year in 2024.

The company raised its share repurchase goal from $800 million to $1.2 billion as part of its commitment to return excess cash to shareholders.

Separately on Tuesday, FIS announced a new partnership with online lender Affirm, to offer a debit service to its banking clients. Through the arrangement, any bank that partners with FIS will be able to provide its own version of the Affirm Card without asking customers to adopt a new piece of plastic.

WATCH: Affirm shares spike