Back to top

Image: Bigstock

What's in Store for Fidelity National (FIS) in Q3 Earnings?

Read MoreHide Full Article

Fidelity National Information Services (FIS - Free Report) is scheduled to release third-quarter 2017 earnings on Oct 31, before the opening bell. While the company’s earnings are expected to grow on a year-over-year basis, revenues are likely to decline.

Notably, Fidelity delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 3%.

In the last quarter, the company pulled off a positive earnings surprise of 5.2%. Results benefited from higher revenues and lower expenses. Also, strong liquidity position was a tailwind.

Fidelity National Information Services, Inc. Price and EPS Surprise

Positive Surprise is Likely

According to our proven model, Fidelity has the right combination of two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: Earnings ESP for Fidelity is +0.11%.

Zacks Rank: Fidelity currently carries a Zacks Rank of 3.

However, Fidelity’s activities during the quarter were inadequate to win analysts’ confidence. As a result, earnings estimates for the quarter remained unchanged at $1.06, over the last seven days.

Factors to Influence Q3 Results

Fidelity’s service revenues are expected to increase because of higher U.S. debit as well as credit card payment volumes. However, per the consensus estimate, rise in revenues from Integrated Financial Solutions of nearly 1% to $1.1 billion will offset by a decline in revenues for Global Financial Solutions of 6.4% to $1 billion. Also, the consensus estimate for overall revenues of $2.2 billion indicates a 3.3% decline from the prior-year quarter.

The company’s focus on introducing new and innovative products in order to meet the growing demand of customers will likely increase expenses, as witnessed in the past.

The Florida-based financial service provider might report worsened asset quality for the quarter. A rise in delinquency rates is likely to be witnessed as a result of Hurricane Irma.

Other Stocks Worth Considering

Ellington Financial LLC (EFC - Free Report) is expected to report results on Nov 2. It has an Earnings ESP of +3.33% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LendingClub Corporation (LC - Free Report) is slated to report results on Nov 7. It has an Earnings ESP of +5.00% and a Zacks Rank #3.

Eaton Vance Corporation (EV - Free Report) is expected to release results on Nov 21. Its Earnings ESP is +0.57% and it carries a Zacks Rank of 3.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>

Published in