NYSE$FIS

Fidelity National Information Services Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

FIS reported an increase in revenue and achieved synergies.

FIS reported a 13% increase in revenue on a reported basis and 1% on an organic basis, reaching $3,197 million. The company achieved approximately $150 million in annual run-rate revenue synergies and over $700 million in expense synergies. Diluted EPS stood at $0.03, while Adjusted EPS reached $1.42. The company generated $1,411 million in net cash from operating activities and $866 million in free cash flow.

  • Revenue increased by 13% on a reported basis and 1% on an organic basis, reaching $3,197 million.
  • Annual run-rate revenue synergies reached approximately $150 million, and annual run-rate expense synergies exceeded $700 million.
  • Diluted EPS was $0.03, and Adjusted EPS was $1.42.
  • Net cash provided by operating activities was $1,411 million, with a free cash flow of $866 million.

Headline financials

Total Revenue

$3.2B

Previous: $2.82B+13.3%
EPS (adj)

$1.42

Previous: $1.43-0.7%
Adjusted EBITDA Margin

42.5%

Previous: 42.2%+0.7%
Capital Expenditures

-$186M

Previous: -$135M-37.8%
Free Cash Flow

-$166M

Previous: $19M-973.7%
Net Income

$20M

Previous: $154M-87.0%
Operating Income

$231M

Previous: $140M+65.0%
Gross Profit

$1.09B

Previous: $984M+11.1%
Cash & Equivalents

$1.83B

Previous: $1.31B+39.9%
Total Assets

$83.2B

Previous: $83.7B-0.6%
Stock-Based Comp

$57M

Previous: $95M-40.0%

Revenue & EPS history

FIS · Revenue · Quarterly

$3.2B

Q3 2020+13.3%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

FIS · $2.18B total across 3 segments · Q3 2020

  • Banking Solutions
    $1.51B+4.4%
  • Capital Market Solutions
    $626M+2.5%
  • Corporate and Other
    $47M-25.4%

Forward guidance

FIS expects to achieve revenue synergies exceeding $200 million and operational expense synergies exceeding $400 million in annual run-rate achievement exiting 2020.

Tailwinds

  • Continued successful origination of new bank referral agreements.
  • Premium Payback cross-selling wins.
  • Revenue synergies remain on track to exceed $200 million in annual run-rate achievement exiting 2020.
  • Expense synergies exceeding $700 million.
  • Operational expense synergies remain on track to exceed $400 million in annual run-rate achievement exiting 2020.

Headwinds

  • COVID-19 continues to impact financial results.
  • Consumer spending impacting Merchant Solutions payments volume and transaction revenue have partially recovered.
  • Certain verticals like travel, entertainment and hospitality continue to be significantly impacted.
  • Revenue continues to be impacted by reduced payment processing volumes within Merchant Solutions segment.
  • Transaction volume within Banking Solutions segment is impacted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.1%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.2%

Avg return

30 days after

53%

38 / 72 earnings

Positive

+10.5%

Q1 2009

Best reaction

-24.3%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.0%-11.1%-13.2%
Q4 2025+2.0%+7.4%-0.1%
Q3 2025+2.5%+3.6%+5.6%
Q1 2025-3.0%+0.0%+2.8%
Q4 2024-11.5%-16.5%-15.6%
Q3 2024-2.8%-1.2%-4.3%
Q2 2024+5.0%+6.6%+13.3%
Q1 2024+5.1%+5.5%+7.4%
Q4 2023+4.2%+7.7%+14.3%
Q3 2023+2.5%+1.3%+13.9%
Q2 2023-6.2%-4.5%-7.2%
Q1 2023+7.1%-3.1%-0.7%
Q4 2022-10.1%-7.9%-31.6%
Q3 2022-24.3%-21.1%-6.8%
Q2 2022-6.5%-5.9%-13.6%
Q1 2022+7.0%+0.8%+8.9%
Q4 2021-9.9%-14.2%-14.6%
Q3 2021+2.5%+4.1%-6.9%
Q2 2021-7.4%-3.8%-8.8%
Q1 2021+2.2%-0.2%-1.0%
Q4 2020-0.1%+1.6%+8.7%
Q3 2020-6.0%-3.0%+11.9%
Q2 2020-1.6%-0.8%+1.3%
Q1 2020-2.8%-3.0%+8.5%
Q4 2019+6.4%+5.2%-12.2%
Q3 2019-0.1%-0.2%+4.5%
Q2 2019+6.8%+8.4%+10.4%
Q1 2019+3.3%+5.6%+7.2%
Q4 2018-2.1%-0.2%-1.2%
Q3 2018+5.0%+4.6%+6.8%
Q2 2018-2.0%-0.8%+2.5%
Q1 2018+3.7%+6.0%+7.6%
Q4 2017-0.4%-2.2%+2.1%
Q3 2017-3.1%-3.0%-1.8%
Q2 2017-1.6%-1.4%+0.5%
Q1 2017-1.7%-1.6%+2.8%
Q4 2016+0.6%+1.4%+3.3%
Q3 2016+1.5%+2.0%+2.4%
Q2 2016+3.7%+2.1%+2.2%
Q1 2016+5.8%
Q4 2015+2.4%
Q3 2015-10.8%
Q2 2015-2.3%
Q1 2015-1.6%
Q4 2014-0.9%
Q3 2014+3.9%
Q2 2014+0.8%
Q1 2014+1.7%
Q4 2013+5.1%
Q3 2013+3.9%
Q2 2013-2.5%
Q1 2013+3.5%
Q4 2012-1.0%
Q3 2012+3.6%
Q2 2012-3.4%
Q1 2012+2.5%
Q4 2011+0.4%
Q3 2011+0.6%
Q2 2011-0.2%
Q1 2011+1.3%
Q4 2010+3.7%
Q3 2010-0.2%
Q2 2010-3.9%
Q1 2009+10.5%
Q1 2010+1.1%
Q4 2009+1.2%
Q4 2007+1.2%
Q3 2008+2.6%
Q3 2009+2.6%
Q2 2009-0.2%
Q2 2008-0.2%
Q4 2008-0.2%

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