Highlights growth strategy capitalizing on
unique position as a scaled technology leader, with global
distribution, a marquee set of clients and a broad suite of
best-of-breed solutions
Introducing medium-term financial outlook,
including expected 9-12% annual adjusted EPS growth
FIS Investor Day webcast to begin today at 8:30
a.m. Eastern Time
FIS® (NYSE: FIS), a global leader in financial technology, will
host its Investor Day today at 8:30 a.m. Eastern Time.
Stephanie Ferris, CEO and President, James Kehoe, CFO, and other
members of the executive team will discuss the company’s plans to
deliver its next phase of sustainable and profitable growth.
FIS yesterday reported first quarter 2024 earnings results and
raised its full-year 2024 financial outlook. Today, FIS leadership
will provide details on the company's growth strategy, its new
medium-term outlook and capital allocation priorities.
“We are unlocking our financial technology across the entire
money life cycle to drive accelerating growth,” said FIS CEO and
President Stephanie Ferris. “Leveraging our distinct strengths and
competitive advantages enables FIS to bring the power of financial
technology to the world’s financial services markets.”
Ferris continued, “We are confident in our ability to lead the
market and generate sustainable and profitable growth, executing on
our strategy to create long-term shareholder value.”
Focused Strategy to Unlock Financial Technology to the
World
FIS is uniquely positioned to lead and win in large and growing
markets. The company’s multiyear strategy is centered on three
pillars:
- Leveraging its strong foundation
- Executing to deliver profitable growth
- Allocating capital with discipline
FIS holds an advantaged position with technology that underpins
the world’s financial system. The company’s scale, breath of
products and global distribution allow it to fully meet its
clients’ needs.
Medium-term Outlook
FIS is announcing financial growth targets for the years 2025
and 2026, including1:
- Adjusted revenue growth of 4.5-5.5% annually
- Adjusted EBITDA margin expansion of 40-60 basis points
annually
- Adjusted earnings per share (EPS) growth of 9-12% annually
- Total return of 11-14% annually*
*Inclusive of ~2% Dividend Yield
1The company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis where it is unable to provide
a meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. The company is unable to address the probable significance
of the unavailable information.
Capital Allocation Priorities: Increased 2024 Share
Repurchase Target by $500 Million to $4 Billion
Yesterday, FIS increased its goal to repurchase at least $4.0
billion of shares by year-end 2024, up from its previous goal of
$3.5 billion. The company expects to return approximately $4.8
billion to shareholders in 2024, across share repurchases and
dividends. In 2025 and 2026, the company anticipates share
repurchases of $0.8 billion to $1.2 billion annually, with total
returns of $1.7 billion to $2.1 billion.
Investor Day Webcast Details
As previously announced, FIS’ Investor Day begins at 8:30 a.m.
Eastern Time. A live webcast of the event, including presentation
materials, will be available on FIS’ website at
www.investor.fisglobal.com. The event will be archived on the site
for those unable to listen in real time.
Forward-Looking Statements
This press release and the Investor Day presentation contain
“forward-looking statements” within the meaning of the U.S. federal
securities laws. Statements that are not historical facts, as well
as other statements about our expectations, beliefs, intentions, or
strategies regarding the future, or other characterizations of
future events or circumstances, are forward-looking statements.
Forward-looking statements include statements about anticipated
financial outcomes, including any earnings outlook or projections,
projected revenue or expense synergies or dis-synergies, business
and market conditions, outlook, foreign currency exchange rates,
deleveraging plans, expected dividends and share repurchases of the
Company, the Company’s sales pipeline and anticipated profitability
and growth, plans, strategies and objectives for future operations,
strategic value creation, risk profile and investment strategies,
any statements regarding future economic conditions or performance
and any statements with respect to the future impacts of the
Worldpay Sale or any agreements or arrangements entered into in
connection with such transaction, the expected financial and
operational results of the Company, and expectations regarding the
Company’s business or organization after the separation of the
Worldpay Merchant Solutions business. These statements may be
identified by words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “will,” “should,” “could,” “would,” “project,”
“continue,” “likely,” and similar expressions, and include
statements reflecting future results, statements of outlook and
various accruals and estimates. These statements relate to future
events and our future results and involve a number of risks and
uncertainties. Forward-looking statements are based on management’s
beliefs as well as assumptions made by, and information currently
available to, management.
Actual results, performance or achievement could differ
materially from these forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject
include the following, without limitation:
- changes in general economic, business and political conditions,
including those resulting from COVID-19 or other pandemics, a
recession, intensified or expanded international hostilities, acts
of terrorism, increased rates of inflation or interest, changes in
either or both the United States and international lending, capital
and financial markets or currency fluctuations;
- the risk that acquired businesses will not be integrated
successfully or that the integration will be more costly or more
time-consuming and complex than anticipated;
- the risk that cost savings and synergies anticipated to be
realized from acquisitions may not be fully realized or may take
longer to realize than expected or that costs may be greater than
anticipated;
- the risks of doing business internationally;
- the effect of legislative initiatives or proposals, statutory
changes, governmental or applicable regulations and/or changes in
industry requirements, including privacy and cybersecurity laws and
regulations;
- the risks of reduction in revenue from the elimination of
existing and potential customers due to consolidation in, or new
laws or regulations affecting, the banking, retail and financial
services industries or due to financial failures or other setbacks
suffered by firms in those industries;
- changes in the growth rates of the markets for our
solutions;
- the amount, declaration and payment of future dividends is at
the discretion of our Board of Directors and depends on, among
other things, our investment opportunities, results of operations,
financial condition, cash requirements, future prospects, and other
factors that may be considered relevant by our Board of Directors,
including legal and contractual restrictions;
- the amount and timing of any future share repurchases is
subject to, among other things, our share price, our other
investment opportunities and cash requirements, our results of
operations and financial condition, our future prospects and other
factors that may be considered relevant by our Board of Directors
and management;
- failures to adapt our solutions to changes in technology or in
the marketplace;
- internal or external security or privacy breaches of our
systems, including those relating to unauthorized access, theft,
corruption or loss of personal information and computer viruses and
other malware affecting our software or platforms, and the
reactions of customers, card associations, government regulators
and others to any such events;
- the risk that implementation of software, including software
updates, for customers or at customer locations or employee error
in monitoring our software and platforms may result in the
corruption or loss of data or customer information, interruption of
business operations, outages, exposure to liability claims or loss
of customers;
- the risk that partners and third parties may fail to satisfy
their legal obligations to us;
- risks associated with managing pension cost, cybersecurity
issues, IT outages and data privacy;
- the reaction of current and potential customers to
communications from us or regulators regarding information
security, risk management, internal audit or other matters;
- risks associated with the expected benefits and costs of the
separation of the Worldpay Merchant Solutions business, including
the risk that the expected benefits of the transaction or any
contingent purchase price will not be realized within the expected
timeframe, in full or at all, or that dis-synergies may be greater
than anticipated;
- the risk that the costs of restructuring transactions and other
costs incurred in connection with the separation of the Worldpay
business will exceed our estimates or otherwise adversely affect
our business or operations;
- the impact of the separation of Worldpay on our businesses,
including the impact on relationships with customers, governmental
authorities, suppliers, employees and other business
counterparties;
- the risk that the earnings from our minority stake in the
Worldpay business will be less than we anticipate;
- competitive pressures on pricing related to the decreasing
number of community banks in the U.S., the development of new
disruptive technologies competing with one or more of our
solutions, increasing presence of international competitors in the
U.S. market and the entry into the market by global banks and
global companies with respect to certain competitive solutions,
each of which may have the impact of unbundling individual
solutions from a comprehensive suite of solutions we provide to
many of our customers;
- the failure to innovate in order to keep up with new emerging
technologies, which could impact our solutions and our ability to
attract new, or retain existing, customers;
- an operational or natural disaster at one of our major
operations centers;
- failure to comply with applicable requirements of payment
networks or changes in those requirements;
- fraud by bad actors; and
- other risks detailed elsewhere in the “Risk Factors” and other
sections of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2023, and in our other filings with the
Securities and Exchange Commission.
Other unknown or unpredictable factors also could have a
material adverse effect on our business, financial condition,
results of operations and prospects. Accordingly, readers should
not place undue reliance on these forward-looking statements. These
forward-looking statements are inherently subject to uncertainties,
risks and changes in circumstances that are difficult to predict.
Except as required by applicable law or regulation, we do not
undertake (and expressly disclaim) any obligation and do not intend
to publicly update or review any of these forward-looking
statements, whether as a result of new information, future events
or otherwise.
About FIS
FIS is a financial technology company providing solutions to
financial institutions, businesses and developers. We unlock
financial technology that underpins the world’s financial system.
Our people are dedicated to advancing the way the world pays, banks
and invests, by helping our clients confidently run, grow and
protect their businesses. Our expertise comes from decades of
experience helping financial institutions and businesses adapt to
meet the needs of their customers by harnessing the power that
comes when reliability meets innovation in financial technology.
Headquartered in Jacksonville, Florida, FIS is a member of the
Fortune 500® and the Standard & Poor’s 500® Index. To learn
more, visit www.FISglobal.com. Follow FIS on Facebook, LinkedIn and
X (@FISglobal).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507110126/en/
Ellyn Raftery, 904.438.6083 Chief Marketing & Communications
Officer FIS Global Marketing & Corporate Communications
Ellyn.Raftery@fisglobal.com
George Mihalos, 904.438.6438 Senior Vice President FIS Investor
Relations Georgios.Mihalos@fisglobal.com
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