By Maria Armental

 

Fidelity National Information Services Inc.'s stock declined 7% to $129.35 after the company lowered profit projections for the year and booked a one-time charge tied to recalculating its deferred tax liability in the U.K. due to corporate tax changes in that country.

The company booked a $178 million charge, or 29 cents a share, in the June quarter, pointing to the recently enacted corporate tax rate increase from 19% to 25%, effective April 1, 2023.

Fidelity National now expects to make $1.20 to $1.45 a share this year, compared with its previous view of $1.30 to $1.60 a share.

It raised annual revenue projections to a range of $13.9 billion to $14 billion, from its earlier view of $13.65 billion to $13.75 billion, and adjusted profit to $6.45 to $6.60 a share, from $6.35 to $6.55 a share.

Overall, on Tuesday the company reported second-quarter profit surged to $341 million, from $19 million a year earlier. On a per-share basis, profit was 55 cents, or $1.61 as adjusted.

Provision for income taxes totaled $302 million in the latest period, compared with $4 million a year earlier.

Meanwhile, revenue rose 17% to $3.48 billion, which company officials said was a record quarterly revenue.

The company had projected 55 cents to 65 cents a share in profit, or $1.52 to $1.55 a share as adjusted, on $3.37 billion to $3.39 billion in revenue.

This quarter, the company expects to make 40 cents to 50 cents a share, or $1.66 to $1.69 a share as adjusted, on $3.49 billion to $3.52 in revenue.

Analysts surveyed by FactSet expect 57 cents a share, or $1.73 a share as adjusted, and $3.5 billion in revenue.

 

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

August 03, 2021 14:02 ET (18:02 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Fidelity National Inform... (NYSE:FIS)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more Fidelity National Inform... Charts.
Fidelity National Inform... (NYSE:FIS)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more Fidelity National Inform... Charts.