On February 11, Fidelity National Information Services, a banking and payments processing firm, predicted first-quarter adjusted profits below Wall Street's expectations. The company's shares dropped by as much as 18.2% to $67.58, marking their lowest point since May 2024.
Despite surpassing fourth-quarter profit projections due to robust consumer spending, concerns have been raised by analysts regarding potential impacts of U.S. President Donald Trump's tariff plans on inflation, possibly leading Americans to adjust their spending habits.
A decrease in consumer spending may negatively affect payment processors such as FIS, which derive income from transaction fees charged to financial institutions and businesses.
FIS anticipates first-quarter adjusted earnings per share for 2025 to range from $1.17 to $1.22, falling short of analysts' estimated $1.28 per share, as per data gathered by LSEG. However, the company forecasts adjusted EPS for 2025 to be between $5.70 and $5.80, with the midpoint exceeding expectations of $5.72.
In the fourth quarter, revenue from the company's banking solutions business increased by 1% to $1.72 billion, while its capital markets segment revenue saw a growth of 9%.
On an adjusted basis, net income for the three months ending on December 31 amounted to $754 million or $1.40 per share, compared to $554 million or 94 cents per share a year earlier. Analysts had predicted a profit of $1.36 per share.
Overall revenue rose by 3% to $2.60 billion.