2024-04-06 05:27:12 ET
Summary
- Fidelity National Information Services shares have performed well, rising 36% in the past year.
- FIS reported Q4 results that missed expectations, with non-GAAP EPS of $0.94 and a 1% decline in revenue, though nonrecurring revenue items drove this weakness.
- FIS plans to allocate $9 billion to debt reduction and $3 billion to buybacks with the proceeds from the sale of a stake in Worldpay.
- Its standalone buyback guidance was raised, and 2024 is likely to exceed my initial expectations.
Shares of Fidelity National Information Services ( FIS ) have been a strong performer over the past year, rising about 36%. In November , I upgraded FIS from “sell” to “buy” as much of the bad news appeared priced in while simplification of the business created potential upside. Since that recommendation, shares have returned nearly 40%, significantly outperforming the market’s 17% gain. In the process, shares have rallied past my initial low-$60’s price target, making now a natural time to revisit FIS....
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Fidelity Information Services: Business Simplification Supports Further Upside