DOW JONES NEWSWIRES
Fidelity National Information Services Inc. (FIS) reported an
18% decrease in second-quarter profit as international revenue
dropped and the company said the environment remained
difficult.
Shares rose 4.2% in late trading to $22.30 as results topped
analysts' expectations and the provider of technological and
processing assistance to banks and financial institutions boosted
its full-year earnings guidance. The company remains confident its
actions to curtail the recession's effects have helped.
Fidelity National now expects a profit of $1.71 to $1.75, up
from its longstanding view of $1.60 to $1.66. Revenue is expected
to increase "modestly" on a constant-currency basis but "decline
slightly" on a reported basis. Analysts were predicting revenue
would fall 1% this year.
The company said the forecast still doesn't include any impacts
on its planned $2.9 billion purchase of
financial-information-technology company Metavante Technologies
Inc. (MV). Fidelity National has said the deal would add to 2010
earnings and noted Tuesday it would update its guidance once the
transaction closed, which should be sometime in the fourth
quarter.
For the second quarter, the company reported earnings fell to
$59.2 million, or 31 cents a share, from $71.9 million, or 37 cents
a share, a year earlier. Excluding acquisition and other impacts,
earnings rose to 42 cents from 34 cents.
Revenue slipped 4% to $834.8 million, but was down just 0.4%
excluding currency fluctuations.
Analysts polled by Thomson Reuters were expecting earnings of 36
cents a share on revenue of $832 million.
International revenue decreased 14% but would have increased
1.4% on a constant-currency basis.
-By David Benoit, Dow Jones Newswires; 212-416-2458;
david.benoit@dowjones.com;