Ep. 354: FIS Revises Q1 Outlook, Withdraws FY 2020 Outlook

Published: April 14, 2020, 5:06 a.m.

b'FIS revises 2020 outlook: https://www.sec.gov/Archives/edgar/data/1136893/000113689320000086/ex991pr-fiscoronavirus.htm\\n\\nExcerpt from press release: \\n\\n"...Consequently, we now estimate that we will generate revenue of $3,060 to $3,080 million during the first quarter of 2020, which represents an increase of approximately 49% to 50% over the prior year period, primarily due to the acquisition of Worldpay. \\n\\nOrganic revenue growth is estimated to be 1% to 2% during the first quarter of 2020, including approximately $20 million in anticipated negative foreign exchange impact. We had previously projected revenue of $3,180 to $3,210 million during the first quarter of 2020, representing an increase of approximately 55% to 56% over the prior year period. \\n\\nOrganic revenue growth was previously estimated to be 5% to 6% during the first quarter of 2020, including approximately $10 million in anticipated negative foreign exchange impact.\\n\\nDuring the first quarter of 2020, we now estimate that our Merchant Solutions segment revenue will increase significantly over the prior year period, primarily due to the acquisition of Worldpay, with organic growth estimated to be approximately flat; our Banking Solutions segment revenue will increase approximately 7% over the prior year period with organic growth estimated to be approximately 1%; and our Capital Market Solutions segment revenue will increase approximately 9% over the prior year period with organic growth estimated to be approximately 7%. Segment revenue growth is primarily being impacted by declines in payment processing volumes within our Merchant Solutions segment as well as lower issuer processing, debit network and account transaction volumes within our Banking Solutions segment.\\n\\nIn response to COVID-19, we are taking several actions to manage discretionary expenses and achieve cost synergies, including limiting travel, reducing incentive compensation and decreasing third-party spending as well as accelerating automation and functional alignment across the organization.\\n\\nDuring the first quarter of 2020, we now estimate that we will generate Adjusted EPS of $1.26 to $1.28 as compared to $1.16 in the prior year period. We had previously projected Adjusted EPS of $1.30 to $1.34 during the first quarter of 2020.\\n\\nWhile we remain confident in the long-term fundamentals of our business, due to the speed at which the COVID-19 situation is developing and the unknown duration of this pandemic event, we are withdrawing our Full-Year 2020 financial guidance. We anticipate providing further updates and details on our first quarter 2020 earnings call."\\n\\nFollow CEORater\'s YouTube channel: https://www.youtube.com/channel/UCV6aM1V38dsdo3KTHt_SSNw/videos\\n\\nVisit us at CEORater.com and TEK2day.com'