FIS registers 3% Y/Y growth in Q3 2023 revenues
Financial services technology provider FIS (NYSE:FIS) today reported its third quarter 2023 results.
On a GAAP basis, excluding $1.2 billion of revenue classified as discontinued operations, revenue increased 3% as compared to the prior year period to approximately $2.5 billion.
GAAP net earnings attributable to common stockholders for continuing operations were $260 million or $0.44 per diluted share. Including discontinued operations,
GAAP net earnings (loss) attributable to common stockholders were $(449) million or $(0.76) per diluted share.
On an organic basis, revenue increased 4% as compared to the prior-year period to approximately $2.5 billion.
Adjusted EBITDA margin expanded by 70 basis points (bps) over the prior-year period to 43.0%. Adjusted net earnings for continuing operations were approximately $560 million, and adjusted EPS decreased by 7% as compared to the prior-year period to $0.94 per diluted share primarily reflecting higher interest costs.
Including discontinued operations, adjusted net earnings were approximately $982 million and adjusted EPS decreased 5% as compared to the prior-year period to $1.65 per diluted share primarily reflecting higher interest costs.
The Company remains committed to shareholder returns and plans to repurchase approximately $500 million of shares in the fourth quarter of 2023, as part of its broader goal to repurchase at least $3.5 billion of shares by year end 2024.
Additionally, the Company continues to target a dividend payout ratio of 35% of adjusted net earnings, excluding net earnings (loss) attributable to the Worldpay Merchant Solutions business non-controlling interest that will be retained post-separation.
“This quarter’s results demonstrate continued positive momentum of the business as we delivered on our financial commitments for the third consecutive quarter, increased our full-year outlook on a consolidated basis, and remain on track to close the pending Worldpay transaction in Q1 2024,” said FIS CEO and President Stephanie Ferris. “I am pleased to announce that we plan to resume share repurchases in the fourth quarter of 2023, ahead of the transaction close, reflecting our confidence in the business and our strengthening financial position. I remain proud of our team members and the essential role they are playing to drive the future of FIS forward for both clients and shareholders.”