Back to top

Image: Bigstock

Fidelity National (FIS) Beats on Q1 Earnings & Revenues

Read MoreHide Full Article

Have you been eager to see how Fidelity National Information Services, Inc. (FIS - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Florida-based financial services technology company’s earnings release this morning:

An Earnings Beat

Fidelity came out with adjusted earnings per share of $1.09, beating the Zacks Consensus Estimate of $1.04. Results reflected lower selling, general and administrative expenses and expanding margins, partially offset by decline in revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Fidelity depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at $1.04 over the last seven days.

However, Fidelity has an impressive earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in each of the trailing four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.7% in the trailing four quarters.

Fidelity National Information Services, Inc. Price and EPS Surprise

Revenue Came in More Than Expected

Fidelity posted revenues of $2.07 billion, which surpassed the Zacks Consensus Estimate of $2.04 billion. However, revenues decreased 3.8% year over year.

Key Takeaways:

  • Adjusted EBITDA margin expanded 340 basis points to 34.1 percent
  • Selling, general and administrative expenses declined 12.9% year-over-year to $358 million
  • Management raised full-year 2018 EPS expectation to $3.04-$3.39, on impressive first quarter performance
     

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Fidelity. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Fidelity earnings report!

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity National Information Services, Inc. (FIS) - free report >>

Published in