Core Insights - Wall Street analysts anticipate Fidelity National Information Services (FIS) to report quarterly earnings of $1.20 per share, reflecting a year-over-year increase of 9.1% [1] - Expected revenues for the quarter are projected at $2.51 billion, which represents a 1.9% increase from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.1% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Forecasts - Analysts forecast 'Revenue- Banking Solutions' to reach $1.71 billion, indicating a year-over-year change of +1.3% [5] - 'Revenue- Corporate and Other' is expected to be $49.64 million, reflecting a significant year-over-year decline of -35.5% [5] - 'Revenue- Capital Market Solutions' is projected at $756.36 million, suggesting a year-over-year increase of +7.1% [5] Adjusted EBITDA Estimates - The average prediction for 'Adjusted EBITDA- Banking Solutions' is $720.66 million, compared to $745 million reported in the same quarter last year [6] - The consensus estimate for 'Adjusted EBITDA- Capital Market Solutions' is $360.18 million, up from $335 million in the previous year [6] Stock Performance - Shares of Fidelity National have shown a return of +4.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [6] - With a Zacks Rank 2 (Buy), FIS is expected to outperform the overall market in the near future [6]

Core Insights - Fidelity National Information Services (FIS) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025 [1] - The consensus EPS estimate for FIS is $1.20 per share, reflecting a +9.1% change year-over-year, with expected revenues of $2.51 billion, up 1.9% from the previous year [3] - The company has a positive Earnings ESP of +0.88%, indicating a likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 [11] Earnings Estimates and Trends - The consensus EPS estimate for FIS has been revised 0.14% higher in the last 30 days, indicating a bullish sentiment among analysts [4] - The Most Accurate Estimate for FIS is higher than the Zacks Consensus Estimate, suggesting improved earnings prospects [10] - FIS has consistently beaten consensus EPS estimates in the past four quarters, with a surprise of +3.70% in the last reported quarter [12][13] Comparison with Industry Peers - MasterCard is expected to report an EPS of $3.57 for the same quarter, representing a +7.9% year-over-year change, with revenues projected at $7.13 billion, up 12.2% [17] - MasterCard's consensus EPS estimate has been revised 0.1% lower, resulting in a negative Earnings ESP of -0.05%, making it challenging to predict a beat on the consensus EPS estimate [18]

Company Overview - Fidelity National Information Services (FIS) shares increased by 8.7% to close at $74.58, following a notable trading volume that exceeded typical levels, contrasting with a 7.7% loss over the previous four weeks [1][2] Strategic Moves - FIS announced a significant strategic decision to sell its remaining stake in Worldpay to Global Payments for $6.6 billion while acquiring Global Payments' Issuer Solutions business for $13.5 billion, which investors view as a smart realignment to enhance FIS's core banking technology capabilities [2] Earnings Expectations - FIS is projected to report quarterly earnings of $1.20 per share, reflecting a year-over-year increase of 9.1%, with expected revenues of $2.5 billion, up 1.4% from the same quarter last year [3] Earnings Estimate Revisions - The consensus EPS estimate for FIS has been slightly revised higher over the past 30 days, indicating a positive trend that typically correlates with stock price appreciation, suggesting potential for further strength in the stock [4] Industry Context - FIS is part of the Zacks Financial Transaction Services industry, where Global Payments (GPN) experienced a 17.4% decline to $69.46, with a return of -14.3% over the past month, contrasting with FIS's recent performance [4]

Market Overview - Wall Street experienced a rebound in risk appetite ahead of the Easter weekend, driven by positive signals from President Trump regarding trade negotiations with the EU and China [1] - The S&P 500 rose by 0.9%, while the Nasdaq 100 increased by 0.5%, recovering from a previous 3% decline [2] - The Dow Jones fell by 0.9%, primarily due to a significant 23% drop in UnitedHealth Group Inc. after the company reduced its full-year earnings forecast [2] Sector Performance - Energy stocks led the gains for the day, supported by rising oil prices, with Exxon Mobil Corp. increasing by 4.1% and Chevron Corp. advancing by 3.5% [2] - The SPDR S&P 500 ETF Trust rose by 0.8% to $530.09, while the SPDR Dow Jones Industrial Average fell by 0.7% to $394.05 [7] - The Energy Select Sector SPDR Fund outperformed with a 3.5% increase, while the Health Care Select Sector SPDR Fund lagged, down 0.1% [7] Notable Stock Movements - Eli Lilly Inc. surged by 16% after announcing successful Phase 3 trials for its oral GLP-1 receptor agonist, Orforglipron [7] - Fidelity National Information Services jumped by 9% following a $13.5 billion acquisition of Global Payments Inc.'s Issuer Solutions business, expected to generate over $125 million in annual revenue synergies [7] - Companies reacting to earnings reports included American Express Co. up 0.5%, Blackstone Inc. up 1.9%, and Charles Schwab Corp. up 2.7% [7] - Netflix Inc. rose by 2% ahead of its earnings report scheduled for release after market close [7]

Financial Performance - Preliminary estimated revenue for Q1 2025 is $2,532 million, exceeding the outlook range of $2,485 - $2,510 million[8] - Adjusted revenue growth for Q1 2025 is 4%, surpassing the guidance of 2.5%-3.5%[8] - Adjusted EBITDA for Q1 2025 is estimated at $958 million, within the outlook of $940-$960 million[8] - Full-year 2025 revenue guidance is reaffirmed at $10,435 - $10,495 million[9] - Adjusted EPS for Q1 2025 is estimated at $1.21, aligning with the guidance of $1.17 - $1.22[8] - Banking recurring revenue growth for Q1 2025 is 2%, above the guidance of 0.5%-1.5%[8] - Capital Markets recurring revenue growth for Q1 2025 is 9%, exceeding the guidance of 7.0%-8.0%[8] - Adjusted EBITDA margin for Q1 2025 is approximately 37.8%, consistent with the outlook range of 37.8%-38.2%[8] Mergers and Acquisitions - The company plans to acquire the Issuer Solutions business from Global Payments for approximately $13.5 billion[11] - The company will sell Worldpay Holdco, LLC to Global Payments for approximately $24.25 billion[11] Risks - The company faces risks related to failure to innovate, which could impact solutions and customer retention[19] - Operational or natural disasters at major operations centers pose significant risks[19] - Compliance failures with payment network requirements could affect operations[19] - The company is exposed to risks of fraud by bad actors[19] - Additional risks are detailed in the "Risk Factors" section of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[19]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends to identify favorable investment opportunities [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - A large pool of stocks is available, with over 800 top-rated options, making it essential to use Style Scores to refine selections [9] Stock Highlight: Fidelity National Information Services (FIS) - FIS is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, indicating strong potential [12] - The company has a forward P/E ratio of 12.21, making it attractive for value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate increasing to $5.74 per share [12] - FIS has demonstrated an average earnings surprise of 9.4%, further supporting its investment appeal [12][13]

Core Insights - Fidelity National Information Services (FIS) is well-positioned to continue its earnings-beat streak in upcoming reports, with a history of surpassing earnings estimates, particularly in the last two quarters, averaging a surprise of 6.12% [1] Earnings Performance - For the most recent quarter, Fidelity National reported earnings of $1.40 per share, exceeding the expected $1.35 per share, resulting in a surprise of 3.70%. In the previous quarter, the company also surpassed expectations, reporting $1.40 per share against a consensus estimate of $1.29 per share, achieving a surprise of 8.53% [2] Earnings Estimates and Predictions - Estimates for Fidelity National have been trending higher, supported by its history of earnings surprises. The stock has a positive Zacks Earnings ESP of +2.06%, indicating that analysts have recently become more optimistic about the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat, with research indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions. This metric is crucial for predicting earnings performance, as it incorporates the most current information available [7] Importance of Earnings ESP - While many companies may beat consensus EPS estimates, this alone does not guarantee stock price increases. Therefore, it is essential to check a company's Earnings ESP prior to quarterly releases to enhance the chances of successful investment decisions [9]

Core Insights - Fidelity National Information Services, Inc. (FIS) has launched its Premium Payback solution, which allows real-time rewards redemption for Bilt, a payments and commerce network that turns everyday housing expenses into rewards [1][3] Group 1: Premium Payback Solution - FIS' Premium Payback connects card issuers and merchants, enabling consumers to redeem loyalty points at the point of sale, enhancing the checkout experience and increasing cardholder engagement [2][3] - Bilt Mastercard holders will be the first to utilize Bilt Points at checkout, with plans to extend this feature to all eligible members by Q3 2025 [3] Group 2: Market Trends and Consumer Behavior - U.S. consumers are increasingly attracted to loyalty programs, with 76% willing to spend more with brands offering such programs, indicating a growing market for FIS' Loyalty business [4] - Outdated systems can hinder point redemption, creating opportunities for FIS to advance financial technologies that facilitate fund transfers among banks, consumers, and businesses [4] Group 3: Financial Performance and Strategy - The adoption of the Premium Payback solution is expected to boost revenues in FIS' Banking Solutions segment, which saw a 2.2% year-over-year revenue increase in 2024 [5] - FIS is committed to innovation through investments in technology, software enhancements, and strategic acquisitions, allowing for a broader range of offerings to clients [6] Group 4: Partnerships and New Solutions - FIS collaborates with various organizations to provide integrated solutions, recently launching the Securities Finance Matching Platform in the U.S. to enhance securities financing for broker-dealers [7] Group 5: Stock Performance - FIS shares have increased by 7% over the past month, outperforming the industry average decline of 1.8% [8]

Core Viewpoint - Fidelity National Information Services, Inc. (FIS) is experiencing strong segment performance, international market presence, collaborations, and solid cash flow generation abilities [1] Financial Performance - FIS currently holds a Zacks Rank 3 (Hold) and has seen a stock gain of 4.9% in the past month, contrasting with a 4.7% decline in the industry [2] - The Zacks Consensus Estimate for FIS' 2025 earnings is $5.74 per share, reflecting a year-over-year improvement of 10%, with revenues estimated at $10.5 billion, a 3.3% increase from 2024 [5] - For 2026, the earnings estimate is $6.28 per share, indicating a rise of 9.5% from 2025, with revenues projected at $10.9 billion, a 4.6% increase from 2025 [6] - The earnings estimate for 2025 has been revised upward by 0.3% in the past 30 days [8] - FIS has outperformed earnings estimates in each of the trailing four quarters, with an average surprise of 9.35% [9] Business Growth Drivers - FIS is experiencing solid revenue growth, with a 4% year-over-year increase in 2024, driven by strong performances in its Banking Solutions and Capital Market Solutions segments [10] - The company employs a combination of organic growth strategies and strategic acquisitions to secure long-term recurring contracts, focusing on advanced technology solutions and targeted marketing campaigns [11] - FIS introduced Treasury GPT, an AI-powered product support tool, in March 2025 to enhance efficiency in treasury management [11] - Strategic partnerships, such as the collaboration with Affirm, aim to broaden FIS' product offerings and enhance customer solutions [12] - The accelerating pace of digital transformation presents significant growth opportunities for FIS, supported by ongoing investments in product innovation and infrastructure improvements [13] Cash Flow and Shareholder Value - FIS generated $2.2 billion in operating cash flow during 2024, representing a 4.7% year-over-year increase, and maintains a dividend yield of 2.2%, higher than the industry average of 0.7% [14]

Company Overview - Fidelity National Information Services, Inc. (FIS) provides banking and payments technology solutions, processing services, and information-based services to the financial services industry. The company was formed following a merger with Certegy Inc. in 2006 [12]. Zacks Rank and Style Scores - FIS currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment potential [13]. - The Momentum Style Score for FIS is B, with shares having increased by 7.1% over the past four weeks, suggesting positive momentum [13]. - For fiscal 2025, eight analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.02 to $5.74 per share [13]. Investment Considerations - FIS has an average earnings surprise of 9.4%, which may indicate a potential for exceeding earnings expectations [13]. - Given its solid Zacks Rank and favorable Momentum and VGM Style Scores, FIS is recommended to be on investors' short lists for potential investment opportunities [14].