If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Fidelity National Information Services (FIS) . This company, which is in the Zacks Financial Transaction Services industry, shows potential for another earnings beat.This banking and payment technologies company has an established record of topping earnings estimates, especially when looking at the previous two reports. The co ...

Summary of Fidelity National Information Services (FIS) 2025 Conference Company Overview - **Company**: Fidelity National Information Services (FIS) - **CEO**: Stephanie Farris, who has extensive experience in payment and technology platforms, digital transformation, and financial leadership [4][5] Industry Insights - **Macro Environment**: Despite global uncertainties, sales pipelines in banking and capital markets remain robust, indicating a focus on business growth [8][9] - **Banking Sector**: FIS's banking business is centered on digital banking, payments, and core banking technology, which are essential for growth and operational efficiency [11][12] - **Consumer Spending**: Consumer spending remains stable, with transaction growth consistent across the industry, despite inflation and unemployment concerns [14][15][16] Key Business Developments - **AI Initiatives**: FIS is actively integrating Generative AI into its products, enhancing operational efficiency and customer service through various applications, including Treasury Chat GPT [19][20][21][22] - **Capital Markets**: FIS's revenue model is based on software as a service, which is not directly impacted by trading activity levels, allowing for stable revenue despite market volatility [26][27][28] - **Pricing Environment**: The capital markets side has seen positive pricing adjustments, while banking has faced challenges due to inflation, but opportunities for revenue growth remain [29][30] Strategic Transactions - **Worldpay Sale**: FIS is selling its remaining stake in Worldpay to Global Payments, allowing both companies to focus on their core strengths [31][32] - **TSYS Acquisition**: The acquisition of TSYS enhances FIS's capabilities in credit card processing for large financial institutions, complementing its existing product suite [33][34][35] - **M&A Strategy**: FIS plans to allocate approximately $1 billion for M&A activities, focusing on small product add-ons that align with its growth strategy [42][43][64][65] Financial Outlook - **Revenue Synergies**: FIS anticipates significant revenue synergies from the TSYS acquisition, with conservative estimates of $45 million in the short term and $125 million in the long term [54][55] - **Capital Allocation**: Post-acquisition, FIS aims to maintain its capital allocation strategy, focusing on share repurchases, dividends, and further M&A opportunities [59][60] Regulatory Considerations - **Regulatory Approvals**: Both the Worldpay sale and TSYS acquisition are undergoing regulatory scrutiny, but FIS does not foresee significant issues in obtaining approvals [48][49][50] Conclusion - **Future Focus**: FIS is committed to leveraging its acquisitions to enhance product offerings and drive revenue growth while maintaining a strong focus on operational efficiency and customer satisfaction [66]

Core Viewpoint - Fidelity National Information Services (FIS) has seen a 6.4% increase in share price over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Estimates Movement - Estimates for Fidelity National have trended downward over the past month, indicating a negative shift in expectations [2] VGM Scores - Fidelity National has a subpar Growth Score of D and a Momentum Score of F, while it holds a middle-tier Value Score of C, resulting in an overall VGM Score of D [3] Outlook - The downward trend in estimates suggests a cautious outlook for Fidelity National, which currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - Within the Financial Transaction Services industry, Paypal (PYPL) has gained 6% over the past month, reporting revenues of $7.79 billion for the last quarter, reflecting a year-over-year increase of 1.2% [5] - For the current quarter, Paypal is expected to report earnings of $1.28 per share, a 7.6% increase from the previous year, with a Zacks Consensus Estimate showing a slight upward revision of 0.2% [6]

Core Insights - Fidelity National Information Services, Inc. (FIS) has been selected by ATLAS SP Partners to implement its Commercial Loan Servicing solution, aimed at improving loan lifecycle management processes [1][8] - The FIS solution enhances automation, adaptability, and risk management, thereby improving service standards for borrowers and investors while increasing operational efficiency and transparency [2][4] Company Overview - The FIS solution is part of a comprehensive Commercial Lending Suite that provides lenders with optimized decision-making, high-quality data, and advanced analytics, supporting all stages of the commercial loan lifecycle [3] - The solution features integrated workflows, customizable processes, and strong security measures tailored for small and mid-sized borrowers [3] Market Dynamics - The timing of this partnership is strategic, as there is a growing demand for innovative lending technologies that offer operational transparency and efficiency, particularly as banks collaborate with non-bank lenders [4] - FIS aims to capitalize on this demand through its Commercial Loan Servicing solution, which is expected to drive revenue growth for the company [5] Technological Advancements - FIS is committed to investing in cutting-edge technologies and developing new solutions to enhance payment infrastructure, allowing for cross-selling opportunities and attracting new clients [6] - The company collaborates with other organizations to provide integrated, end-to-end solutions to its customers [6] Financial Performance - FIS shares have increased by 15% over the past three months, significantly outperforming the industry average growth of 0.5% [7]

Group 1 - Fidelity National Information Services (NYSE: FIS) shares have experienced significant volatility over the past year, with mixed financial results and substantial mergers and acquisitions impacting stock performance [1] - The stock is currently trading flat compared to its position a year ago, indicating a lack of significant movement despite the underlying financial activities [1] Group 2 - The company has over fifteen years of experience in making contrarian investment decisions based on macroeconomic views and specific stock turnaround stories, aiming for high returns with a favorable risk/reward profile [1]

Fidelity National Information Services (FIS) FY Conference May 14, 2025 10:40 AM ET Speaker0 Alright. Thanks everyone. My name is Tien Tsin Huang. Payments and IT services analyst here at JPMorgan. So this is the FIS session, which with us from FIS, have James Kehoe, the CFO. Always enjoy talking to James. He brings a wealth of experience, and I know he was a CFO at at Walgreens Boots Alliance back in the day, and I've heard a lot of good stories from from James. And I think excited to be working with him n ...

Fidelity National Information Services (FIS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by th ...

Core Insights - Fidelity National Information Services (FIS) reported revenue of $2.53 billion for the quarter ended March 2025, reflecting a year-over-year increase of 2.6% [1] - Earnings per share (EPS) for the quarter was $1.21, up from $1.10 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.5 billion by 1.10%, and the EPS also surpassed the consensus estimate of $1.20 by 0.83% [1] Revenue Breakdown - Banking Solutions revenue was $1.72 billion, slightly above the average estimate of $1.71 billion, with a year-over-year increase of 2% [4] - Corporate and Other revenue was reported at $50 million, compared to the average estimate of $49.64 million, showing a significant year-over-year decline of 35.1% [4] - Capital Market Solutions revenue reached $764 million, exceeding the average estimate of $756.36 million, with a year-over-year growth of 8.2% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Banking Solutions was $688 million, below the average estimate of $720.66 million [4] - Adjusted EBITDA for Corporate and Other was -$99 million, better than the estimated -$129.07 million [4] - Adjusted EBITDA for Capital Market Solutions was $369 million, slightly above the average estimate of $360.18 million [4] Stock Performance - Fidelity National's shares have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Part I [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 consolidated financial statements detail financial position, earnings, and cash flows, post-Worldpay sale [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) March 31, 2025 balance sheet reflects asset, liability, and equity changes, driven by Worldpay divestiture Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$32,841** | **$33,784** | | Current assets held for sale | $— | $1,115 | | Goodwill | $17,328 | $17,260 | | Equity method investment | $3,795 | $3,858 | | **Total Liabilities** | **$17,773** | **$18,084** | | Long-term debt, excluding current portion | $8,658 | $9,686 | | **Total Equity** | **$15,068** | **$15,700** | [Condensed Consolidated Statements of Earnings (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(Loss)) Q1 2025 revenue grew 3% to **$2.53 billion**, but net earnings decreased due to prior year's discontinued ops gain Q1 Earnings Comparison (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $2,532 | $2,468 | | Gross Profit | $879 | $909 | | Operating Income | $347 | $355 | | Net Earnings (loss) from Continuing Operations | $78 | $0 | | Earnings (loss) from Discontinued Operations, net of tax | $— | $707 | | **Net Earnings (loss) attributable to FIS** | **$77** | **$706** | | **Diluted EPS** | **$0.15** | **$1.22** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from continuing operations improved to **$457 million**, investing activities used **$1.68 billion** Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities from continuing operations | $457 | $206 | | Net cash provided by (used in) investing activities from continuing operations | $(1,676) | $9,381 | | Net cash provided by (used in) financing activities from continuing operations | $(265) | $(9,446) | | Net cash provided by (used in) discontinued operations | $303 | $(345) | | **Net (decrease) in cash** | **$(1,141)** | **$(246)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail corporate actions: Worldpay divestiture and pending Global Payments Issuer Solutions acquisition - On Jan 31, 2024, FIS completed the sale of a **55%** equity interest in its Worldpay Merchant Solutions business, now presented as discontinued operations, with FIS retaining a **45%** non-controlling equity method interest[25](index=25&type=chunk)[26](index=26&type=chunk) - On April 17, 2025, FIS agreed to acquire Global Payments' Issuer Solutions business for **$13.5 billion** and sell its remaining Worldpay interest to Global Payments for **$6.6 billion**, expected to close by H1 2026[104](index=104&type=chunk) - Due to the pending Worldpay stake sale, FIS no longer expects to receive **$1.0 billion** in contingent consideration from the original 2024 Worldpay sale and anticipates a non-cash loss of **$108 million** in Q2 2025[82](index=82&type=chunk)[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, revenue growth, strategic shifts, and pending Global Payments deal [Consolidated Results of Operations](index=34&type=section&id=Consolidated%20Results%20of%20Operations) Q1 2025 revenue grew 3% to **$2.53 billion**, but gross profit and operating income slightly declined Consolidated Results of Operations (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $2,532 | $2,468 | 3% | | Gross Profit | $879 | $909 | (3)% | | Operating Income | $347 | $355 | (2)% | | Total other income (expense), net | $(117) | $(249) | NM | - The decrease in Other income (expense) in Q1 2025 compared to Q1 2024 is mainly due to a **$174 million** loss on extinguishment of debt recorded in the prior-year period[146](index=146&type=chunk) [Segment Results of Operations](index=36&type=section&id=Segment%20Results%20of%20Operations) Q1 2025: Banking Solutions revenue up 2% with margin decline; Capital Market Solutions up 8% with improved margin Banking Solutions Performance (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1,718 | $1,685 | 2% | | Adjusted EBITDA | $688 | $739 | (7)% | | Adjusted EBITDA Margin | 40.1% | 43.9% | (380) bps | Capital Market Solutions Performance (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $764 | $706 | 8% | | Adjusted EBITDA | $369 | $335 | 10% | | Adjusted EBITDA Margin | 48.3% | 47.4% | 90 bps | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, FIS maintained **$4.0 billion** liquidity and **$12.0 billion** total debt, continuing capital return - The company has **$4.0 billion** of available liquidity as of March 31, 2025, including **$0.8 billion** in cash and **$3.2 billion** of available capacity under its Revolving Credit Facility[163](index=163&type=chunk) - In Q1 2025, the company repurchased a total of **6.2 million** shares for approximately **$450.3 million**, with approximately **$2.7 billion** remaining available for repurchase under the August 2024 authorization[92](index=92&type=chunk)[166](index=166&type=chunk)[186](index=186&type=chunk) - A regular quarterly dividend of **$0.40** per common share was declared, payable on June 24, 2025[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risks) FIS faces market risks from interest rates and foreign currency, with **89%** fixed-rate debt mitigating volatility - As of March 31, 2025, **89%** of the company's debt was fixed-rate, and a **100 basis-point** increase in variable-rate debt would increase annual interest expense by **$13 million**[178](index=178&type=chunk)[179](index=179&type=chunk) - A hypothetical **10%** adverse movement in foreign exchange rates would have resulted in a **$26 million** change in reported revenue for the three months ended March 31, 2025[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with no material internal control changes - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[183](index=183&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[184](index=184&type=chunk) Part II [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the Annual Report on Form 10-K - No material changes in risk factors were reported compared to the Form 10-K for the year ended December 31, 2024[185](index=185&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, FIS repurchased **6.2 million** shares for **$450.3 million**, with **$2.7 billion** remaining for repurchase Share Repurchases for Q1 2025 | Authorization | Shares Purchased (millions) | Total Cost (millions) | | :--- | :--- | :--- | | January 2021 | 1.4 | $110.3 | | August 2024 | 4.8 | $339.8 | | **Total** | **6.2** | **$450.1** | [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the reporting period[187](index=187&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists various exhibits filed or furnished, including management certifications, compensatory arrangements, and XBRL data

Core Viewpoint - Fidelity National Information Services, Inc. (FIS) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.21, exceeding estimates and showing an 11% year-over-year increase [1]. Financial Performance - Revenues reached $2.532 billion, a 3% year-over-year improvement, surpassing management's expectations [1]. - Adjusted EBITDA was $956 million, down 17.3% year over year, but still above estimates [4]. - The adjusted EBITDA margin decreased by 142 basis points to 37.8% [4]. Segment Performance - The Capital Market Solutions segment saw an 8% revenue growth to $764 million, with an adjusted EBITDA margin improvement of 90 basis points to 48.3% [6]. - The Banking Solutions unit generated $1.72 billion in revenue, growing 2% year over year, but the adjusted EBITDA margin fell by 379 basis points to 40.1% [5]. - The Corporate and Other segment's revenues dropped 36% year over year to $50 million, with an adjusted EBITDA loss of $99 million [7]. Cost and Expenses - Cost of revenues increased by 6% year over year to $1.7 billion [3]. - Selling, general and administrative (SG&A) expenses decreased by 2.6% to $558 million, although this was higher than estimates [3]. - Net interest expenses rose by 3.9% year over year to $80 million, but were lower than estimates [3]. Cash Flow and Equity - The company ended the quarter with cash and cash equivalents of $805 million, a 3.5% decline from the previous year [8]. - Total equity decreased by 4% to $15.1 billion [9]. - Net cash from operations was $457 million, more than doubling year over year, while adjusted free cash flows increased nearly four-fold to $368 million [9]. Shareholder Returns - Fidelity National returned $670 million to shareholders through share buybacks of $450 million and dividends of $220 million [11]. - Management aims for share buybacks of around $1.2 billion in 2025 and plans to align dividend growth with adjusted EPS growth [11]. Future Guidance - For Q2 2025, management forecasts revenues between $2.560 billion and $2.585 billion, with adjusted EBITDA projected at $1.020-$1.035 billion [12]. - For the full year 2025, revenues are expected to be between $10.435 billion and $10.495 billion, with adjusted EPS anticipated between $5.70 and $5.80, indicating a 10.2% growth from 2024 [13][14].