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Fidelity National (FIS) to Post Q4 Earnings: What to Expect
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Fidelity National Information Services, Inc. (FIS - Free Report) is set to report its fourth-quarter 2022 results on Feb 15, before the opening bell.
In the last reported quarter, the financial solutions provider’s adjusted earnings per share of $1.74, which missed the Zacks Consensus Estimate by a penny due to weaker-than-expected performance in its three major segments. Inflated costs affected its Banking Solutions and Merchant Solutions’ profits. The negatives were partially offset by higher volumes and lower expenses.
The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.70 has witnessed no movement in the past week. The estimate indicates an 11.5% decline from the year-ago quarter’s reported earnings of $1.92 per share. The Zacks Consensus Estimate for revenues is pegged at $3.7 billion, suggesting a rise of 0.3% from the year-ago quarter’s reported figure.
Fidelity National’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.9%. This is depicted in the graph below.
Fidelity National Information Services, Inc. Price and EPS Surprise
Fidelity National is likely to have continued benefiting from the digital transformation of the global economy in the fourth quarter. Rising investments in mobile banking and product expansion are also expected to have played a major role in boosting the company’s performance. FIS’s investments in technology and innovation across high-growth markets are anticipated to have helped expand its total addressable market in the quarter. However, expenses are likely to have risen due to the investments.
Fidelity National’s acquisition of Payrix is likely to have supported its Banking Solutions unit’s sales. The Zacks Consensus Estimate for fourth-quarter revenues indicates 2.6% growth from the year-ago period.
The Zacks Consensus Estimate for revenues from the Capital Market Solutions segment predicts 1.7% year-over-year growth. The consensus mark for the unit’s adjusted EBITDA signals a 2.9% increase from the year-ago quarter’s reported figure.
In the fourth quarter, cross-border travel is likely to have witnessed a continued increase. This is expected to have boosted the demand for the FIS e-commerce payment gateway and the new payment platform. The Zacks Consensus Estimate for Merchant Solutions revenues from the segment predicts a 1.1% year-over-year increase.
However, a rising expense base, primarily due to higher salaries and benefits, as well as some inflationary pressures, is likely to have affected the bottom line in the to-be-reported quarter. Also, the upgrades of platforms and applications are expected to have increased the company’s costs in the December-end quarter, reducing the profit levels.
The consensus estimate for fourth-quarter adjusted EBITDA from the Banking Solutions unit suggests a 5.6% decrease from the prior quarter’s reported figure. Also, the consensus mark for adjusted EBITDA in Merchant Solutions indicates a 6.6% year-over-year decline, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Fidelity National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. The Most Accurate Estimate is currently pegged at $1.70 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Fidelity National currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Fidelity National, here are some companies in the broader Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Ritchie Bros.’s bottom line for the to-be-reported quarter indicates 10% year-over-year growth. RBA 's earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 20.8%.
GFL Environmental Inc. (GFL - Free Report) has an Earnings ESP of +15.00% and a Zacks Rank of 2.
The Zacks Consensus Estimate for GFL Environmental’s bottom line for the to-be-reported quarter indicates a 16.7% increase from the year-ago quarter’s reported figure. GFL’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 203.2%.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +15.49% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Avis Budget’s bottom line for the to-be-reported quarter is pegged at $6.85 per share, which remained stable over the past week. CAR beat on earnings in all the last four quarters, with an average of 67.2%.
Image: Bigstock
Fidelity National (FIS) to Post Q4 Earnings: What to Expect
Fidelity National Information Services, Inc. (FIS - Free Report) is set to report its fourth-quarter 2022 results on Feb 15, before the opening bell.
In the last reported quarter, the financial solutions provider’s adjusted earnings per share of $1.74, which missed the Zacks Consensus Estimate by a penny due to weaker-than-expected performance in its three major segments. Inflated costs affected its Banking Solutions and Merchant Solutions’ profits. The negatives were partially offset by higher volumes and lower expenses.
Let’s see how things have shaped up prior to the fourth-quarter 2022 earnings announcement.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.70 has witnessed no movement in the past week. The estimate indicates an 11.5% decline from the year-ago quarter’s reported earnings of $1.92 per share. The Zacks Consensus Estimate for revenues is pegged at $3.7 billion, suggesting a rise of 0.3% from the year-ago quarter’s reported figure.
Fidelity National’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.9%. This is depicted in the graph below.
Fidelity National Information Services, Inc. Price and EPS Surprise
Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote
Factors to Note
Fidelity National is likely to have continued benefiting from the digital transformation of the global economy in the fourth quarter. Rising investments in mobile banking and product expansion are also expected to have played a major role in boosting the company’s performance. FIS’s investments in technology and innovation across high-growth markets are anticipated to have helped expand its total addressable market in the quarter. However, expenses are likely to have risen due to the investments.
Fidelity National’s acquisition of Payrix is likely to have supported its Banking Solutions unit’s sales. The Zacks Consensus Estimate for fourth-quarter revenues indicates 2.6% growth from the year-ago period.
The Zacks Consensus Estimate for revenues from the Capital Market Solutions segment predicts 1.7% year-over-year growth. The consensus mark for the unit’s adjusted EBITDA signals a 2.9% increase from the year-ago quarter’s reported figure.
In the fourth quarter, cross-border travel is likely to have witnessed a continued increase. This is expected to have boosted the demand for the FIS e-commerce payment gateway and the new payment platform. The Zacks Consensus Estimate for Merchant Solutions revenues from the segment predicts a 1.1% year-over-year increase.
However, a rising expense base, primarily due to higher salaries and benefits, as well as some inflationary pressures, is likely to have affected the bottom line in the to-be-reported quarter. Also, the upgrades of platforms and applications are expected to have increased the company’s costs in the December-end quarter, reducing the profit levels.
The consensus estimate for fourth-quarter adjusted EBITDA from the Banking Solutions unit suggests a 5.6% decrease from the prior quarter’s reported figure. Also, the consensus mark for adjusted EBITDA in Merchant Solutions indicates a 6.6% year-over-year decline, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Fidelity National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. The Most Accurate Estimate is currently pegged at $1.70 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Fidelity National currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Fidelity National, here are some companies in the broader Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Ritchie Bros. Auctioneers Incorporated (RBA - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ritchie Bros.’s bottom line for the to-be-reported quarter indicates 10% year-over-year growth. RBA 's earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 20.8%.
GFL Environmental Inc. (GFL - Free Report) has an Earnings ESP of +15.00% and a Zacks Rank of 2.
The Zacks Consensus Estimate for GFL Environmental’s bottom line for the to-be-reported quarter indicates a 16.7% increase from the year-ago quarter’s reported figure. GFL’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 203.2%.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +15.49% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Avis Budget’s bottom line for the to-be-reported quarter is pegged at $6.85 per share, which remained stable over the past week. CAR beat on earnings in all the last four quarters, with an average of 67.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.