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].

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 [11] - The company was formed following a merger with Certegy Inc. in 2006, which specialized in credit card and transaction processing services [11] Investment Ratings - FIS currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a strong overall rating [12] - The Value Style Score for FIS is B, supported by a forward P/E ratio of 12.13, making it attractive for value investors [12] Earnings Estimates - In the last 60 days, six analysts have revised their earnings estimates upwards for FIS, with the Zacks Consensus Estimate increasing to $5.72 per share [12] - FIS has demonstrated an average earnings surprise of 9.4%, indicating a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and strong Value and VGM Style Scores, FIS is recommended for investors' consideration [13]

Financial Performance - Total consolidated revenue for 2024 reached $10,127 million, a 3% increase from $9,831 million in 2023 and a 4.2% increase from $9,720 million in 2022[20] - Banking Solutions segment generated $6,892 million in revenue for 2024, up 2.2% from $6,743 million in 2023 and 4.0% from $6,625 million in 2022[20] - Capital Market Solutions revenue increased to $2,979 million in 2024, representing a 7.7% growth from $2,766 million in 2023 and a 13.2% increase from $2,631 million in 2022[20] - Corporate and Other segment revenue decreased to $256 million in 2024, down 20.5% from $322 million in 2023 and 44.8% from $464 million in 2022[20] Strategic Initiatives - The company continues to invest in core modernization efforts to enhance its offerings and maintain competitive advantage in the market[22] - Digital banking capabilities have expanded significantly, providing financial institutions with integrated solutions that improve customer experience across multiple channels[22] - The company is focused on enhancing its fraud, risk management, and compliance solutions, utilizing advanced technologies such as artificial intelligence and predictive analytics[24] - Capital Markets segment clients benefit from investments in modern platforms and advanced technologies, including machine learning and regulatory technology[25] - The company plans to wind down or sell certain non-strategic businesses within the Corporate and Other segment, which includes corporate overhead expenses[26] Regulatory Compliance - The company is subject to a broad range of complex federal, state, and international regulations, including the Dodd-Frank Act and the Bank Secrecy Act, which may impact its operations and compliance costs[34] - The company’s U.S.-based wealth and retirement business is regulated by the Georgia Department of Banking and Finance, which imposes specific compliance requirements[36] - The company’s payment services are overseen by the FFIEC and must comply with various regulations regarding corporate governance, capital requirements, and anti-money laundering[37] - The company is required to develop and implement risk-based anti-money laundering programs and file regulatory reports on large cash transactions and suspicious activities[37] - The company is subject to the E.U.'s GDPR, which imposes stricter standards for data protection and breach reporting, affecting its operations in the E.U.[39] - The company’s broker-dealer subsidiary is registered with the SEC and must adhere to regulations covering all aspects of the securities business, including capital structure and record keeping[40] - The company’s consumer reporting subsidiary, ChexSystems, is regulated under the FCRA, which governs the accuracy and privacy of consumer information[43] - The company has made significant investments to maintain high security levels for consumer data and ensure compliance with privacy laws[43] - The company is subject to oversight by various international regulatory bodies, including the FCA in the U.K., impacting its operations outside the U.S.[42] - The company’s compliance with evolving privacy and data protection laws globally continues to grow in complexity and cost[38] Workforce and Employment - As of December 31, 2024, the company had over 50,000 employees, with more than 32,000 employed outside the U.S.[45] - Approximately 6,000 employees, primarily in Brazil and Europe, are represented by labor unions or works councils as of December 31, 2024[45] - The company continues to operate FIS Cares, a global employee-funded giving program to support employees in times of need[47] Mergers and Acquisitions - The company completed the Worldpay Sale in January 2024, retaining a 45% equity interest, which may expose it to new operational risks[117] - The anticipated strategic, financial, and operational gains from the Worldpay Sale may not materialize, potentially leading to revenue dis-synergies[117] - The company is subject to various legal proceedings, including class-action cases and patent infringement litigation, which could adversely affect its financial condition[112] Financial Risks - The enactment of the EU's Pillar Two Directive establishes a minimum effective tax rate of 15%, which could impact the company's tax expense[113] - The company faces significant competition for talent, particularly in senior management and technology personnel, which could affect its growth[108] - The company operates in emerging markets that may experience significant economic volatility, adding uncertainty to future revenue and earnings[105] - Compliance with anti-bribery and anti-corruption laws is critical, as violations could result in penalties and adversely affect the company's operations[102] - As of December 31, 2024, goodwill totaled $17.3 billion, representing 51% of total assets, while intangible assets amounted to $1.3 billion, or 4% of total assets[122] - Total debt as of December 31, 2024, was approximately $11.3 billion, which may limit operational flexibility and increase borrowing costs[123] - The company has approximately €4.0 billion in Euro-denominated senior notes and €0.1 billion in Euro-denominated commercial paper, equivalent to about $4.3 billion[124] - Rising interest rates could increase the cost of refinancing existing debt and incurring new debt, adversely affecting financing costs[126] - The company maintains investment grade credit ratings (S&P BBB, Moody's Baa2, Fitch BBB) which are crucial for cost of funds and liquidity[127] Forward-Looking Statements and Risks - Forward-looking statements include expectations about financial outcomes, market conditions, and strategic plans, but are subject to risks and uncertainties[128] - The company faces risks related to potential impairments of goodwill and intangible assets due to economic downturns or underperformance[122] - Integration of acquired businesses may incur significant unanticipated costs and challenges, impacting strategic objectives[120] - The company is exposed to cybersecurity risks associated with acquired systems and businesses[120] - There is a risk of significant liabilities arising from acquisitions or divestitures that may exceed indemnification provisions[120]

Core Insights - Fidelity National Information Services (NYSE: FIS) experienced a significant stock performance decline of 11% following weak Q4 earnings results and guidance after a strong year where the stock had increased by 30% [1] Group 1 - The stock had been a solid performer over the past year, adding 30% [1] - The abrupt halt in the stock's strong run occurred on Tuesday due to disappointing Q4 earnings results [1] - The analyst downgraded shares based on the recent performance and outlook [1]

Core Viewpoint - The article compares Fidelity National Information Services (FIS) and Shift4 Payments (FOUR) to determine which stock is more attractive to value investors [1] Valuation Metrics - FIS has a forward P/E ratio of 12.75, while FOUR has a forward P/E of 26.04 [5] - FIS has a PEG ratio of 0.56, indicating better value relative to its expected earnings growth compared to FOUR's PEG ratio of 1.01 [5] - FIS has a P/B ratio of 2.51, significantly lower than FOUR's P/B of 9.90, suggesting FIS is undervalued relative to its book value [6] Earnings Outlook - FIS is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - The Zacks Ranks for FIS and FOUR are 2 (Buy) and 4 (Sell), respectively, indicating a stronger earnings outlook for FIS [3]

Fidelity National Information Services, Inc. (FIS) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.40, which beat the Zacks Consensus Estimate by 3.7%. Also, the bottom line increased 48.9% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Revenues grew 3.6% year over year to $2.6 billion. However, the top line missed the consensus mark by 1.3%.Strong fourth-quarter earnings benefited from robust recurring revenue growth in both segments and new sales mo ...