FIS, the global technology services provider, has unveiled its annual results for 2023, indicating a sharp 41% decrease in net earnings.
FIS has revised its target for share repurchases to $4 billion by the conclusion of 2024, marking a notable upsurge from the preceding objective.
By December 31, 2023, FIS surpassed its Future Forward cash savings projections, realising over $550 million in annual savings.
The corporation is striving for a cumulative cash saving of $1 billion by the culmination of 2024.
Stephanie Ferris, CEO and President of FIS, remarked, “Our 2023 results and our 2024 outlook reflect the continued positive momentum of the business as we delivered on our financial commitments for the fourth consecutive quarter and successfully closed the Worldpay transaction.”
“I am pleased with our outperformance on our Future Forward expectations and to announce that we are once again increasing our share repurchase goal by $500 million, reflecting our confidence in the strength of the business and our ongoing commitment to returning capital to shareholders.”
FIS disclosed a diluted EPS of $0.11 for continuing operations and an adjusted EPS of $0.94.
The diluted EPS from continuing operations and the adjusted EPS were $0.85 and $3.37, respectively.
Moreover, the company outlined an upbeat forecast for the first quarter and the entirety of 2024, envisaging accelerated revenue growth, expanded adjusted EBITDA margins, and an upswing in year-over-year adjusted EPS.
FIS anticipates revenue ranging between £2.43 billion and £2.455 billion for the first quarter of 2024 and between £10.1 billion and £10.15 billion for the entire year.
Additionally, the company foresees reporting an adjusted EBITDA of between £955 million and £970 million for the first quarter.
The completion of the Worldpay transaction in January 2024 marked a significant milestone for FIS.
FIS’ 45% ownership of the Worldpay Merchant Solutions business will be reflected under the “Equity method investment earnings (loss)” line of the income statement, commencing in the first quarter of 2024.
The company aims for a dividend payout ratio of 35% of adjusted net earnings.
FIS’ Board of Directors has sanctioned a regular quarterly dividend of £0.36 per common share, payable on March 22, 2024, to shareholders of record as of March 8, 2024.