Photo: Carlos Delgado / CC BY-SA 3.0
FIS shares tumbled 24% in midday trading Wednesday after the financial technology company cut its full-year profit outlook, one of the steepest drops on the S&P 500 in CNBC’s midday trading snapshot.
The Jacksonville, Florida-based payments and banking-technology company now expects adjusted full-year earnings of $5.82 to $5.89 per share, down from its previous outlook of $6.15 to $6.24, according to CNBC.
In its third-quarter results, FIS reported GAAP revenue of about $3.5 billion, up 27% from a year earlier, lifted by an acquisition; on a pro forma basis, revenue grew 3.7%. Adjusted earnings came in at $1.61 per share.
The company also said a strategic review of its portfolio is ongoing. It has not announced any breakup or divestiture.
FIS’s software moves money for banks, merchants and capital-markets firms worldwide, so its outlook is read as an early signal on consumer and business payment volumes heading into the holiday quarter.
JBizNews Desk | New York
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