By Mackenzie Tatananni

Shares of Fidelity National Information Services tumbled on Tuesday after the fintech issued a conservative forecast of its first-quarter earnings.

The stock fell 15% to $70, on pace for the largest same-day percent decrease since Nov. 3, 2022, when the company's quarterly earnings fell short of expectations. Stock in the fintech, which does business as FIS, was the worst performer in the S&P 500, according to Dow Jones Market Data.

The stock plummeted despite some positive financial results. Earnings of $1.40 a share for the three months through December narrowly beat the consensus call for $1.36 among analysts tracked by FactSet. Revenue rose 3% from the prior year to $2.6 billion, nearly in line with consensus estimates.

Adjusted net income from continuing operations was $754 million, handily topping the FactSet consensus estimate of $727 million. The company's banking solutions and capital market solutions segments both saw growth in the quarter, with revenue rising 1% and 9%, respectively.

Disappointing forecasts for both earnings and revenue caused the stock to fall. FIS said it expects first-quarter earnings in the range of $1.17 to $1.22 a share, well below the FactSet consensus estimate of $1.28. Management expects revenue of between $2.49 billion and $2.51 billion, while the consensus call on the Street was for $2.57 billion.

Chief Financial Officer James Kehoe said on a call to discuss the results that management anticipates "a somewhat slower start to the year, " with first-quarter revenue growth pinned at around 2.5% to 3.5%.

Kehoe pointed to "client-requested implementation delays" related to contracts, an issue identified during the company's third-quarter earnings call, saying that shifted revenue out of both the fourth quarter of 2024 and the first quarter of 2025.

The CFO said he was more upbeat about the April-June quarter, forecasting "an immediate pickup in the second quarter" after the softness in the first.

The company's capital markets segment is set to have a strong start to the year, while its banking division is expected to accelerate later on the back of "the ramp-up of previously signed deals."

"We have good visibility into the drivers, and we are confident our second-quarter banking growth will be within the full year outlook range of 3.7% to 4.4%," Kehoe said.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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February 11, 2025 12:36 ET (17:36 GMT)

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