Why Is Fidelity National (FIS) Up 2.4% Since Last Earnings Report?

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].