Back to top

Image: Bigstock

What's in the Cards for Fidelity National (FIS) Q2 Earnings?

Read MoreHide Full Article

Fidelity National Information Services (FIS - Free Report) is scheduled to release second-quarter 2019 earnings on Aug 6, before the opening bell. The company’s earnings and revenues are expected to reflect year-over-year growth.

Notably, Fidelity delivered positive earnings surprises in each of the trailing four quarters, the average beat being 2.64%.

In the last reported quarter, the company pulled off a positive earnings surprise of 4.46%. Organic revenue growth and expanding margin were key tailwinds. However, huge outstanding debt was a headwind. Also, poor performance of Global Financial Solutions segment was a concern.

Factors to Influence Q2 Results

Fidelity’s revenue growth performance for the April-June quarter is unlikely to be impressive due to stiff competition in the industry. Per the consensus estimate, Global Financial Solutions revenues are likely to slip around 2.3% to $878 million, though revenues from Integrated Financial Solutions are expected to increase 4.8% year over year to $1.18 billion. Also, the overall top line of $2.1 billion is projected to be up 0.22% from the prior-year quarter.

The Florida-based financial service provider’s bottom line might benefit slightly from lower tax rates and relatively higher rates.

The company’s focus on introducing fresh and innovative products in order to meet customers’ rising demand may escalate expenses.

Fidelity’s shares have gained around 7.8% in the three-month period ended Jun 30, 2019, compared with the industry’s growth of 10.3%.

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

Here is what our quantitative model predicts:

Fidelity does not have the right combination of 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 0.00%.

Zacks Rank: It carries a Zacks Rank #3, which increases the predictive power of ESP. But we need to have a positive earnings ESP to be sure of an earnings beat.

Notably, for the second quarter, the Zacks Consensus Estimate for earnings indicates a 44.7% jump on a year-over-year basis.

Stocks That Warrant a Look

T. Rowe Price Group, Inc. (TROW - Free Report) has been witnessing upward estimate revisions, for the past 30 days. Moreover, this Zacks #1 Ranked stock has rallied more than 4%, in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions, for the past 30 days. Also, the company’s shares have gained nearly 0.5% in three months’ time. At present, it carries a Zacks Rank of 2 (Buy).

Federated Investors, Inc. (FII - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped around 6.6% over the past three months. It currently carries a Zacks Rank #2.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>