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Is a Beat Likely for Fidelity National (FIS) in Q2 Earnings?

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Fidelity National Information Services (FIS - Free Report) is scheduled to release second-quarter 2018 earnings on Jul 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 each of the trailing four quarters, with an average beat of 5.7%.

In the last reported quarter, the company pulled off a positive earnings surprise of 4.8%. Results benefited from lower expenses and expansion of net interest margin. However, decline in revenues was a headwind.

Fidelity National Information Services, Inc. Price and EPS Surprise

Factors to Influence Q2 Results

Fidelity’s revenue growth story for the second quarter is not expected to be impressive due to the stiff competition in the industry. Per the consensus estimate, revenues from Integrated Financial Solutions are expected to decline 5.1% to $1.12 billion and Global Financial Solutions revenues are likely to fall 13.2% to $934 million. Also, the overall top line of $2.12 billion is projected to decline 9.3% from the prior-year quarter.

The Florida-based financial service provider’s bottom line might benefit slightly from the lower tax rates and rising interest rate environment.

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.

Why an Earnings Beat 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 +1.04%.

Zacks Rank: Fidelity currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Also, Fidelity’s activities during the quarter were inadequate to win analysts’ confidence. As a result, earnings estimates for the quarter remained unchanged at $1.20, over the last seven days.

Notably, for the second quarter, the Zacks Consensus Estimate for earnings indicates 17.7% growth on a year-over-year basis.

Performance & Earnings Schedule of Other Stocks

MasterCard (MA - Free Report) just came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.53. This compares favorably to earnings of $1.10 per share reported a year ago. These figures are adjusted for non-recurring items.

Fiserv and Cardtronics PLC are scheduled to report results on Jul 31 and Aug 2, respectively.

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