Fidelity National Information Services Shares Plunge 24% Following Soft Guidance and CFO Departure
Fidelity National Information Services (FIS) saw its stock price drop by over 24% following the release of third-quarter earnings. While the company reported a revenue increase of 26.8% to $3.45 billion and an adjusted EPS beat, much of this growth was attributed to the recent $13.5 billion acquisition of Global Payments' issuer solutions business. Investor concern centered on decelerating organic growth guidance for the fourth quarter and full year, alongside the unexpected announcement that CFO James Kehoe is stepping down. The company also faces scrutiny over its debt profile, carrying over $14 billion in net debt used to fund recent acquisitions, which creates pressure on free cash flow.
Topics: acquisition debt earnings report executive resignation organic growth stock price plunge