Fidelity National Information Services Inc. shares jumped Wednesday after the banking technology vendor reported fourth-quarter results that topped Wall Street expectations.
It cited strong results from small financial company clients and those outside the United States.
“Financial institutions will continue to invest in new technologies and capabilities if the return is strong enough,” Lee Kennedy, Fidelity National’s president and chief executive officer, said on a conference call with analysts Tuesday.
Fidelity National said its fourth-quarter adjusted net earnings from continuing operations increased 41.2% from a year earlier, to 48 cents a share, topping analysts’ average estimate by 4 cents.
Net earnings fell 73%, to $28.8 million. Total revenue grew less than 1%, to $862 million, and in the integrated financial services unit, which serves smaller banks, grew 6.4%, and international revenue grew 9.7%.
The company expects adjusted net earnings to grow 7% to 11% this year, to $1.60 to $1.66 a share, and revenue growth to top 2%.
Glenn Greene, an analyst at Oppenheimer & Co. Inc., called the results a testament to the vendor’s diversified business model.
“Given the company’s strong free cash flow outlook, we expect a favorable near-term stock reaction,” Mr. Greene, who rates the stock “market perform,” wrote in a note to clients Wednesday.
By midafternoon the shares had climbed 9.25% from Tuesday’s close, to $18.07.