What Is FIS’s Guidance for 2017?



2017 guidance

James Woodall, Fidelilty Information Services’ (FIS) chief financial officer, shared the company’s outlook for 2017 during the 4Q16 earnings call. The company is forecasting EPS (earnings per share) of $4.15–$4.30, implying a year-over-year rise of 9.0%–13.0%.

Revenues are expected to be $3.0 billion–$3.1 billion. Overall, the company expects organic revenue to rise 2.0%–3.0%. In 2017, the Integrated Financial Solutions segment is expected to rise 3.0%–4.0%, while the Global Financial Solutions segment is expected to rise 4.0%–5.0%.

For the first quarter of 2017, FIS expects EPS of $0.81–$0.83. Peers (XLF) Fiserv (FISV) and Jack Henry & Associates (JKHY) also expect growth in 2017.

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FIS’s growth strategy

Regarding FIS’s growth strategy, Gary Norcross, president and chief executive officer of FIS, said, “In 2017, we will continue driving the strategy, focused on our three growth levers. First, we will continue to execute on our investment strategy to deliver new, differentiating capabilities, leveraging digital technology and advanced analytics to help our clients progress their competitive position.”

He went on to talk about the company’s cloud strategy, which he said “is focused on re-platforming the legacy server-based technology to new cloud technologies to gain the benefits of speed, efficiency, and scale, which allows us to maintain and grow our margins. In 2016, we concluded the year with over 20% of our server-based client systems running in our private cloud. And we anticipate this percentage to nearly double by the end of 2017.”

Norcross also said that FIS “will continue to capitalize on our expanded scale, operating leverage and our disciplined integration to fuel growth. We have captured a steady stream of new wins and expanded business through cross-sell and upsell of our new portfolio assets from the SunGard acquisition. This further allows us to meet pressing industry needs for efficiency and growth with FIS integrated solution suites. Third, our strong cash flow generation enables us to invest for growth, continue to pay down debt, and return capital to shareholders. This strategic focus allows us to compete effectively to meet client and market demand.”


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