Fidelity National Information Services, Inc. (FIS, Financial) has announced a definitive agreement to acquire Global Payments’ Issuer Solutions division. This acquisition positions the enterprise value at $13.5 billion, with a net purchase price of $12 billion after accounting for anticipated tax assets of $1.5 billion.
Simultaneously, FIS has agreed to sell its stake in Worldpay to Global Payments for a pre-tax value of $6.6 billion. The company views this move as a strategic acceleration of monetizing its minority interest in Worldpay.
Looking ahead to 2025, FIS plans to adhere to its capital allocation priorities, including the potential for up to $1 billion in mergers and acquisitions and $1.2 billion in share repurchases. The company remains committed to its dividend policy, anticipating annual dividend per share growth aligned with adjusted earnings growth.
For the first quarter, FIS projects revenues of $2.5 billion, with an expected adjusted revenue growth of approximately 4%. The company anticipates banking adjusted revenue to climb around 2%, exceeding its prior outlook, while recurring revenue is forecasted to grow by 3%. Adjusted earnings per share are projected at approximately $1.21, aligning with the higher end of the company's expectations.
The company's revenue and earnings projections resonate with market consensus estimates, which anticipate $2.5 billion in revenue and $1.20 in earnings per share. FIS has reaffirmed its 2025 outlook concerning adjusted revenue growth, adjusted EBITDA, and adjusted earnings, reflecting its confidence in sustained financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Fidelity National Information Services Inc (FIS, Financial) is $83.39 with a high estimate of $113.00 and a low estimate of $53.00. The average target implies an upside of 11.82% from the current price of $74.58. More detailed estimate data can be found on the Fidelity National Information Services Inc (FIS) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Fidelity National Information Services Inc's (FIS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fidelity National Information Services Inc (FIS, Financial) in one year is $89.21, suggesting a upside of 19.62% from the current price of $74.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fidelity National Information Services Inc (FIS) Summary page.
