Payments processor FIS forecasts quarterly profit below estimates, shares drop

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(Reuters) -Banking and payments processing firm Fidelity National Information Services on Tuesday forecast first-quarter adjusted profit below Wall Street estimates.

Shares of the company fell as much as 18.2% to $67.58, hitting their lowest since May 2024.

The company still beat estimates for fourth-quarter profit, helped by strong consumer spending, but some analysts have raised concerns that U.S. President Donald Trump’s tariff plans could drive up inflation and prompt Americans to tighten their budgets.

Lower spending volumes could hurt payment processors such as FIS that collect transaction fees from financial institutions and businesses.

The company expects 2025 first-quarter adjusted earnings per share in the range of $1.17 to $1.22, below analysts’ estimates of $1.28, according to data compiled by LSEG.

However, FIS forecast 2025 adjusted EPS between $5.70 and $5.80, with the midpoint above expectations of $5.72.

For the fourth quarter, revenue from the company’s banking solutions business rose 1% to $1.72 billion, while its capital markets segment revenue grew 9%.

On an adjusted basis, its net income was $754 million, or $1.40 per share, for the three months ended December 31, compared with $554 million, or 94 cents per share, a year ago.

Analysts had expected a profit of $1.36 per share.

Its revenue rose 3% to $2.60 billion.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Devika Syamnath)