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Fidelity National Information Services Stock Drops as Guidance Lags

Fidelity National Information Services raised its guidance for the second time this year, but third-quarter expectations are below analyst estimates.
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Shares of Fidelity National Information Services  (FIS) - Get Fidelity National Information Services, Inc. Report dropped on Tuesday after the company reported second-quarter results that topped estimates but provided third-quarter earnings guidance that missed expectations. 

At last check shares of the Jacksonville, Fla., provider of technology solutions for financial services were 8.4% lower at $127.49. The stock's 52-week low is $120.17, set in late October.

Second-quarter earnings of $1.61 a share beat the consensus estimate of analysts of $1.55 a share, derived from a FactSet survey. Revenue of $3.48 billion beat the estimate of $3.39 billion. 

FIS's "cloud-native solutions portfolio [has created] a significant pipeline with our clients and prospects," Chief Executive Gary Norcross said in a statement. 

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The company raised its full-year guidance, the second time it has increased its guidance this year, based on the strength of its second quarter. 

While the full-year guidance is ahead of expectations, third-quarter expectations are below estimates. 

The company is expecting third-quarter earnings of $1.66 to $1.69 a share on revenue between $3.49 billion and $3.52 billion. Analysts are expecting earnings of $1.73 per share and revenue of $3.49 billion. 

For the full year, the company expects earnings of $6.45 to $6.60 a share on revenue between $13.9 billion and $14 billion. Analysts are expecting earnings of $6.50 a share and revenue of $13.76 billion.