We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fidelity National (FIS) Q4 Earnings: What Lies in Store?
Read MoreHide Full Article
Fidelity National Information Services, Inc. (FIS - Free Report) ) is set to release fourth-quarter 2016 earnings results on Feb 7. In the last quarter, the company reported a positive earnings surprise of 2.04%. The company delivered positive earnings surprises in three out of the last four quarters, with an average positive earnings surprise of 3.36%.
Further, in the past year, Fidelity’s shares have generated a positive return of 31.42% compared with the Zacks Financial Transaction Services industry’s gain of 17.37%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Over the years, Fidelity has strengthened its dominant position in the financial and payments solutions business, primarily based on its superior product portfolio.
Also, Fidelity is well positioned to benefit from increasing investment in mobile banking and innovative products such as PayNet. Mobile banking is developing into an essential extension of online banking with accelerating smartphone and tablet usage. Fidelity’s recent partnership with PayPal (PYPL - Free Report) for digital payments is likely to boost its customer engagement.
Per media reports, the company inked a deal in Dec 2016 to sell SunGard Public Sector and Education businesses to Vista Equity Partners for $850 million. The sale of the units is in line with its strategy to focus more on its core operations of providing software, technology and processing services to the retail and institutional banking, payments, and asset and wealth management sectors.The company intends to utilize the expected cash proceeds (net of taxes and deal-related expenses) of $500 million in reducing its outstanding debt.
Nevertheless, increasing consolidation in the banking sector, challenging environment for the Payments Solutions business and sluggish demand of people-based professional services are the primary headwinds. Also, intensifying competition from the likes of Fiserv Inc. , Global Payments Inc. and Alliance Data Systems Corp. remains a concern.
Fidelity National Information Services, Inc. Price and EPS Surprise
Our proven model does not conclusively show that Fidelity is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Fidelity is +0.88%. This is because the Most Accurate estimate stands at $1.15 while the Zacks Consensus Estimate is pegged at $1.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Fidelity has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Ranks #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Here is a stock that, as per our model, has the right combination of elements to post an earnings beat this quarter:
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fidelity National (FIS) Q4 Earnings: What Lies in Store?
Fidelity National Information Services, Inc. (FIS - Free Report) ) is set to release fourth-quarter 2016 earnings results on Feb 7. In the last quarter, the company reported a positive earnings surprise of 2.04%. The company delivered positive earnings surprises in three out of the last four quarters, with an average positive earnings surprise of 3.36%.
Further, in the past year, Fidelity’s shares have generated a positive return of 31.42% compared with the Zacks Financial Transaction Services industry’s gain of 17.37%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Over the years, Fidelity has strengthened its dominant position in the financial and payments solutions business, primarily based on its superior product portfolio.
Also, Fidelity is well positioned to benefit from increasing investment in mobile banking and innovative products such as PayNet. Mobile banking is developing into an essential extension of online banking with accelerating smartphone and tablet usage. Fidelity’s recent partnership with PayPal (PYPL - Free Report) for digital payments is likely to boost its customer engagement.
Per media reports, the company inked a deal in Dec 2016 to sell SunGard Public Sector and Education businesses to Vista Equity Partners for $850 million. The sale of the units is in line with its strategy to focus more on its core operations of providing software, technology and processing services to the retail and institutional banking, payments, and asset and wealth management sectors.The company intends to utilize the expected cash proceeds (net of taxes and deal-related expenses) of $500 million in reducing its outstanding debt.
Nevertheless, increasing consolidation in the banking sector, challenging environment for the Payments Solutions business and sluggish demand of people-based professional services are the primary headwinds. Also, intensifying competition from the likes of Fiserv Inc. , Global Payments Inc. and Alliance Data Systems Corp. remains a concern.
Fidelity National Information Services, Inc. Price and EPS Surprise
Fidelity National Information Services, Inc. Price and EPS Surprise | Fidelity National Information Services, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Fidelity is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Fidelity is +0.88%. This is because the Most Accurate estimate stands at $1.15 while the Zacks Consensus Estimate is pegged at $1.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Fidelity has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Ranks #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Here is a stock that, as per our model, has the right combination of elements to post an earnings beat this quarter:
Twilio Inc. (TWLO - Free Report) with an Earnings ESP of +8.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>