Under the Radar: FIS Shares Drop to Lowest Level in 14 Years

Dow Jones11-04

Shares of Fidelity National Information Services fell sharply Wednesday after the software company cut its guidance, in part due to bank customers delaying conversions.

The stock fell over 20% in morning trading, putting it on track for its lowest close since 2012.

-- FIS, a large provider of software for banks and payment processing, said that large bank clients had opted to delay conversions of systems during the quarter. The company also flagged that converting legacy software licenses to subscription and usage-based software products would weigh on results.

-- CEO Stephanie Ferris on a call with analysts indicated some of the delays could relate to banks focusing on cybersecurity. "There is certainly a reprioritization of activities inside the bank, to make sure that they and we can get through and make sure everything is as secure as possible."

-- FIS also said it would stop share buybacks and pause acquisitions in an effort to reduce its debt load.

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