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Sep 30, 2020
FIS Q3 2020 Earnings Report
FIS reported an increase in revenue and achieved synergies.
Key Takeaways
FIS reported a 13% increase in revenue on a reported basis and 1% on an organic basis, reaching $3,197 million. The company achieved approximately $150 million in annual run-rate revenue synergies and over $700 million in expense synergies. Diluted EPS stood at $0.03, while Adjusted EPS reached $1.42. The company generated $1,411 million in net cash from operating activities and $866 million in free cash flow.
Revenue increased by 13% on a reported basis and 1% on an organic basis, reaching $3,197 million.
Annual run-rate revenue synergies reached approximately $150 million, and annual run-rate expense synergies exceeded $700 million.
Diluted EPS was $0.03, and Adjusted EPS was $1.42.
Net cash provided by operating activities was $1,411 million, with a free cash flow of $866 million.
Revenue by Segment
Forward Guidance
FIS expects to achieve revenue synergies exceeding $200 million and operational expense synergies exceeding $400 million in annual run-rate achievement exiting 2020.
Positive Outlook
- Continued successful origination of new bank referral agreements.
- Premium Payback cross-selling wins.
- Revenue synergies remain on track to exceed $200 million in annual run-rate achievement exiting 2020.
- Expense synergies exceeding $700 million.
- Operational expense synergies remain on track to exceed $400 million in annual run-rate achievement exiting 2020.
Challenges Ahead
- COVID-19 continues to impact financial results.
- Consumer spending impacting Merchant Solutions payments volume and transaction revenue have partially recovered.
- Certain verticals like travel, entertainment and hospitality continue to be significantly impacted.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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