The global technology services provider FIS has announced its full-year results for 2023, highlighting a decline of 41% in net earnings. FIS has raised its share repurchase goal to $4 billion by the end of 2024, a significant increase from the previous target.

As of December 31, 2023, FIS exceeded its Future Forward cash savings expectations, achieving over $550 million in annual savings. The company aims to achieve total cash savings of $1 billion by the end of 2024.

FIS Projects Revenue Growth for 2024

FIS’ CEO and President, Stephanie Ferris, mentioned: "Our 2023 results and our 2024 outlook reflect the continued positive momentum of the business as we delivered on our financial commitments for the fourth consecutive quarter and successfully closed the Worldpay transaction."

"I am pleased with our outperformance on our Future Forward expectations and to announce that we are once again increasing our share repurchase goal by $500 million, reflecting our confidence in the strength of the business and our ongoing commitment to returning capital to shareholders."

FIS reported a diluted EPS of $0.11 for continuing operations and an adjusted EPS of $0.94. The diluted EPS from continuing operations and the adjusted EPS were $0.85 and $3.37, respectively.

Additionally, the company outlined an optimistic outlook for the first quarter and full year 2024, projecting accelerated revenue growth, expanded adjusted EBITDA margins, and an increase in year-over-year adjusted EPS.

FIS anticipates revenue of between $2.43 billion and $2.455 billion for the first quarter of 2024 and between $10.1 billion and $10.15 billion for the full year. Besides that, the company expects to report an adjusted EBITDA of between $955 million and $970 million for the first quarter.

Capital Allocation and Shareholders' Returns

FIS completed the Worldpay transaction in January 2024, marking a significant milestone for the company. FIS’ 45% ownership of the Worldpay Merchant Solutions business will be reported under the "Equity method investment earnings (loss)" line of the income statement starting in the first quarter of 2024.

The company targets a dividend payout ratio of 35% of adjusted net earnings. FIS' Board of Directors has approved a regular quarterly dividend of $0.36 per common share, payable on March 22, 2024, to shareholders of record as of March 8, 2024.