Fidelity National Information Services (FIS) came out with quarterly earnings of $1.36 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10.57%. A quarter ago, it was expected that this banking and payment technologies company would post earnings of $0.96 per share when it actually produced earnings of $1.10, delivering a surp ...

Core Insights - Fidelity National Information Services, Inc. (FIS) is expected to report a significant decline in second-quarter 2024 earnings and revenues, with earnings estimated at $1.23 per share, reflecting a 20.7% decrease year-over-year, and revenues projected at nearly $2.5 billion, indicating a 33.6% drop from the previous year [1] Earnings Performance - The company has beaten consensus earnings estimates in two of the last four quarters, with an average surprise of negative 5.7% [2] - The Earnings ESP for Fidelity National is 0.00%, indicating no expected earnings beat, as the Most Accurate Estimate aligns with the consensus [3] Revenue and Segment Analysis - The Banking Solutions segment is projected to see a slight year-over-year revenue growth of 2.4%, while adjusted EBITDA is expected to increase by nearly 3% [6] - The Capital Market Solutions segment is anticipated to grow over 7% year-over-year in revenues, with adjusted EBITDA expected to rise by 5.6% [7][8] Cost and Expense Considerations - The cost of revenues is estimated at $1.55 billion, reflecting a 2% year-over-year increase, which may pressure profit margins and contribute to uncertainty regarding earnings performance [9] - Increased expenses related to platform improvements and inflationary pressures are expected to impact overall profitability [9] Market Position and Stock Performance - Fidelity National's stock has increased by 27.9% year-to-date, outperforming the industry growth of 5.3% and the S&P 500 Index's gain of 16% [11] - The company’s strategic investments in digital transformation and mobile banking are expected to enhance financial results, aligning with evolving consumer preferences [5] Future Outlook - Despite the positive long-term outlook due to digital transformation efforts and high recurring revenues, the company faces challenges such as increasing competition, anticipated profit declines, and high debt levels [13]

Analysts on Wall Street project that Fidelity National Information Services (FIS) will announce quarterly earnings of $1.23 per share in its forthcoming report, representing a decline of 20.7% year over year. Revenues are projected to reach $2.49 billion, declining 33.6% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Pri ...

When evaluating for overvaluation, it is important to analyze key metrics like the price-to-earnings (P/E) ratio and others, as well as look for profitability loss or some negative news. In addition, the relative strength index (RSI) may be reviewed to identify overbought conditions. So, let's examine three stocks that exhibit metrics outside of normal and meet some of these requirements. Source: JHVEPhoto / Shutterstock.com A reduction in interest rates could benefit the company's coverage ratio and reduce ...

Financial technology, or fintech, is a branch of banking that utilizes technological innovation to provide all sorts of financial products and services to users from all over the world from the comfort of their mobile devices. With fintech, global citizens can save their money, borrow, lend and even invest without having to step foot in a bank or other financial institution. This technological innovation has led to the emergence of a new class of high-potential stocks called fintech stocks. Fidelity Nationa ...

ial Transaction Services Market (ZS Image Source: Zacks Investment Research Zacks Rank & Key Picks Fidelity currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Financial Transaction Services space are MoneyLion Inc. (ML) , Repay Holdings Corporation (RPAY) , and Shift4 Payments, Inc. (FOUR) . Each of these companies carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for MoneyLion's current ...

Investors should always be aware of their current positioning in the market cycle, especially when considering fintech stocks to sell. AI greatly propelled market expansion, so much so that just 10 top stocks in the S&P 500 make up 34% of the index, breaking the previous market concentration record all the way back in the 1920s. By their very nature, fintech companies rely on consumer transaction volumes to churn out revenue. And what happens after a sustained decline in job openings as LinkUp and Indeed da ...

Images By Tang Ming Tung Fidelity National Information Services (NYSE:FIS) has gone back to its past, having sold a controlling stake in the Worldpay merchant services business to a private equity buyer, FIS is once again focused on its long-time core businesses of providing outsourced processing, payment, and tech solutions to banking and investment clients. It's a business that has performed well for FIS in the past and where it still holds strong share. Better still, it's a business where competitive pre ...

Zacks Rank & Price Performance Rising Estimates Fidelity National is benefiting from strong recurring revenue growth across all its segments. Acceleration in new sales and focus on high-growth areas should continue to fuel top-line growth in the Banking Segment. The company expects banking-adjusted revenues to grow between 3% and 3.5% in 2024. Moreover, the recent banking uncertainty is boding well for FIS, leading to growth in accounts on file serviced on its platforms and, hence, rising banking revenues. ...

Core Viewpoint - Fidelity National Information Services (FIS) reported a mixed performance in its Q1 2024 earnings, with adjusted EPS beating estimates but a decline in revenues year over year. The company is focusing on margin expansion and cost efficiencies to drive future growth [2][3][5]. Financial Performance - Q1 2024 adjusted EPS was $1.10, exceeding the Zacks Consensus Estimate by 14.6%, but down 14.7% year over year [2]. - Revenues fell 29.6% year over year to $2.5 billion, although this was above the consensus estimate of $2.4 billion [2]. - Adjusted EBITDA rose 8% year over year to $975 million, surpassing estimates [5]. Segment Performance - Banking Solutions unit revenues increased 2% year over year to $1.68 billion, exceeding estimates [6]. - Capital Market Solutions segment revenues grew 7% year over year to $706 million, beating the consensus estimate [7]. - Corporate and Other segment revenues declined 12% year over year to $77 million, but still surpassed estimates [8]. Cost and Expenses - Cost of revenues was $1.55 billion, down 1.2% year over year [4]. - Selling, general and administrative expenses rose 10.8% year over year to $573 million, exceeding estimates [4]. - Net interest expenses decreased 45.8% year over year to $77 million, lower than estimates [4]. Cash Flow and Equity - Cash and cash equivalents increased to $3.3 billion from $440 million at the end of 2023 [9]. - Total equity dropped to $18 billion from $19.1 billion at the end of 2023 [10]. - Net cash from operations was $206 million, down 29.2% year over year [10]. Shareholder Returns - The company returned $1.6 billion to shareholders through share buybacks and dividends in Q1 2024 [11]. - Management aims to return a minimum of $4 billion to shareholders through share buybacks by the end of 2024 [12]. Future Guidance - For Q2 2024, revenues are projected between $2.465 billion and $2.490 billion, with adjusted EBITDA expected in the range of $980-$995 million [14]. - Full-year 2024 revenues are expected to be between $10.10 billion and $10.15 billion, indicating a 3.1% improvement from 2023 [15]. - Adjusted EPS guidance for 2024 has been revised upward to between $4.88 and $4.98, suggesting a 46.3% increase from 2023 [17]. Industry Context - Fidelity National operates in the Zacks Financial Transaction Services industry, which has seen mixed performance among peers, such as Bread Financial Holdings, which reported a significant revenue decline [22].