FIS Sees Significant Premarket Price Drop Following Earnings Report

Fidelity National Information Services, Inc. (FIS) is experiencing a notable decline in its stock price, with a premarket drop of $8.66, translating to a 10.5% decrease. The current premarket price stands at $74.00, as investors react to the company's recently released earnings report.

In its earnings report, FIS reported a full-year 2024 GAAP diluted EPS of $1.42, which marks a 67% increase compared to the previous year. Additionally, the adjusted EPS for the same period was $5.22, reflecting a 56% increase year-over-year. However, despite these positive earnings, the overall revenue growth was modest, with a 3% increase on a GAAP basis and a 4% increase on an adjusted basis, totaling $10.1 billion.

CEO Stephanie Ferris highlighted the positive momentum achieved in 2024, particularly following the successful separation from Worldpay. However, the outlook for 2025 introduced concerns among investors, as it includes projections for only 4.6% to 5.2% revenue growth, which some analysts may consider underwhelming given the company's historical performance.

Moreover, FIS announced a share repurchase plan, committing to buy back approximately $1.2 billion worth of shares in 2025, which is intended to bolster shareholder returns. While this is a positive move, the mixed signals from the earnings report and cautious guidance for the upcoming year may have contributed to the stock's premarket decline.

As FIS navigates through these changes, investors will be closely monitoring the company's ability to execute its strategy effectively and deliver on its growth targets. The current market reaction suggests a level of uncertainty regarding FIS's future performance.