FIS Clocks 8% Revenue Growth In Q1 Backed By Merchant, Banking, Capital Market Solutions - Fidelity National Info (NYSE:FIS)

Fidelity National Information Services, Inc FIS reported first-quarter FY21 revenue growth of 8% year-on-year to $3.49 billion, beating the consensus of $3.44 billion. On an organic basis, revenue grew 9%.
Merchant Solutions revenue grew 15% Y/Y to $1.11 billion. Revenue from Banking Solutions rose 7% Y/Y to $1.65 billion, and Capital Market Solutions increased 5% to $658 million.
Margin: Adjusted EBITDA margin was flat at 40.6% as it successfully offset rising wage inflation, comparisons created by stimulus-related revenue in the prior-year period, and ramping large client wins.
Adjusted EPS of $1.47 beat the consensus of $1.45.
FIS held $3.7 billion in cash and equivalents and generated $896 million in operating cash flow.
"FIS is off to a strong start to the year," Chair and CEO Gary Norcross said. "We chose to continue to invest in new solutions and capabilities to benefit our clients throughout the pandemic."
In 2022, the company expects to repurchase shares worth $3 billion, primarily during the second half.
Dividend: FIS recently raised its quarterly dividend by 21% Y/Y to $0.47 per share, payable on June 24, 2022, to shareholders of record on June 10, 2022.
Outlook: FIS sees Q2 revenue of $3.65 billion - $3.685 billion, below the consensus of $3.69 billion. It sees Q1 adjusted EPS of $1.72 - $1.75, versus the consensus of $1.75.
FIS reiterated the FY22 revenue outlook of $14.78 billion - $14.925 billion versus the consensus of $14.84 billion. The company sees FY22 adjusted EPS of $7.25 - $7.37 against the consensus of $7.29.
Price Action: FIS shares traded higher by 1.44% at $98.90 on the last check Tuesday.

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