FIS Cuts Q1, FY Guidance Due To Foreign Currency; Realigns Segments

(RTTNews) - IT services provider Fidelity National Information Services Inc (FIS) on Thursday cut its guidance for the first quarter and full year 2015, citing mainly the impact of foreign currency exchange rates, as well as the non-renewal of a contract, and costs related to meeting market demand in Europe.

FIS now expects first-quarter adjusted earnings of $0.64 to $0.66 per share, down from prior guidance of $0.67 to $0.72 per share. Analysts polled by Thomson Reuters expect earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

For the full year 2015, the company now expects adjusted earnings of $3.27 to $3.37 per share on revenue growth of 1% to 3%. Earlier it expected earnings of $3.37 to $3.49 per share on revenue growth of 5% to 7%.

Analysts expect earnings of $3.42 per share on revenue growth of 5.8% for 2015.

FIS also said that in response to market conditions and to efficiently meet the demand of its specific client needs, the company is reorganizing and streamlining its global operations and changing its reportable segments.

In March, the company finalized this realignment with the formation of two new reportable segments to focus on growth and the specific market demands of its clients in its two principal markets.

According to FIS, the Integrated Financial Solutions segment was formed to serve regional and community North American financial institutions, while the Global Financial Solutions segment was formed to serve large, global and international financial institutions. In connection with the realignment, the company's management and existing solutions and services were assigned to one of these two segments.

FIS said that among other benefits, this change in focus is intended to help it increase sales to global financial institutions, a market in which it has made significant investment in recent years.

In connection with its reorganization activities, FIS said it incurred significant severance costs in its quarter ended March 2015 GAAP results.