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What's in Store for Fidelity National's (FIS) Q1 Earnings?

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Fidelity National Information Services (FIS - Free Report) is scheduled to release first-quarter 2021 results on May 6, before the bell. The company’s revenues are anticipated to have grown year over year, while earnings might have witnessed a decline.

Notably, Fidelity delivered earnings surprises in three of the trailing four quarters and met in the other, the average beat being 2.30%.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Strong liquidity position and expanding margin were the key tailwinds. Also, decline in expenses was a positive. However, flat organic revenues posed a key concern.

Factors at Play

During the first quarter, overall demand for consumer loans improved modestly. In fact, credit card loan balances witnessed a rise.

Thus, Fidelity is likely to display a weak revenue-growth performance for the January-March quarter as underlying business trends remained robust. Notably, overall revenues of $3.16 billion are projected to increase 2.5% from the prior-year quarter.

This Florida-based financial service provider’s bottom-line results might disappoint on the adverse impact from lower rates.

Also, the company’s focus on rolling out innovative products in order to meet customers’ rising demand might have inflated expenses.

Fidelity’s shares have gained 12.7% in the three-month period ended Mar 31, 2021, compared with the industry’s gain of 0.4%.

Earnings Whispers

Will the upcoming earnings release give a boost to Fidelity’s stock? That depends largely on whether or not the company is able to impress the market with the first-quarter results.

Here is what our quantitative model predicts:

Fidelity has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing 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.

Earnings ESP: The Earnings ESP is currently pegged at +2.01%.

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

Notably, the Zacks Consensus Estimate of $1.25 for the first-quarter earnings suggests a 2.4% decline on a year-over-year basis.

Earnings Dates for Other Finance Stocks

Main Street Capital Corporation (MAIN - Free Report) and FS KKR Capital Corp. (FSK - Free Report) are scheduled to announce quarterly results on May 6 and May 10, respectively.

Gladstone Investment Corporation (GAIN - Free Report) is scheduled to announce the March-end quarter’s results on May 11.

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