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What to Expect From Fidelity National's (FIS) Q4 Earnings?

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Fidelity National Information Services (FIS - Free Report) is scheduled to release fourth-quarter 2019 earnings on Feb 13, before the opening bell. The company’s sales are anticipated to reflect year-over-year growth, while earnings might display a decline.

Notably, Fidelity delivered positive earnings surprises in three of the trailing four quarters, the average beat being 2.92%.

In the last reported quarter, the company’s results surpassed the Zacks Consensus Estimate. Organic revenue growth and expanding margin were key tailwinds. However, significant rise in expenses posed a key concern.
 

Factors at Play

Fidelity is likely to display a disappointing revenue-growth performance for the October-December quarter due to stiff competition in the industry. Global Financial Solutions revenues might display a decline, while revenues from Integrated Financial Solutions are likely to reflect growth. Also, overall revenues of $3.3 billion are projected to reflect a 53.8% surge from the prior-year quarter.

This Florida-based financial service provider’s bottom-line results might disappoint on fall in interest rates.

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

Fidelity’s shares have gained around 6% in the three-month period ended Dec 31, 2019, compared with the industry’s growth of 8.1%.

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 fourth-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 +0.30%.

Zacks Rank: It currently carries a Zacks Rank of 3, which increases the predictive power of ESP.

Notably, the Zacks Consensus Estimate for the fourth-quarter earnings indicates a 3.7% decline on a year-over-year basis.

Other Stocks That Warrant a Look

Cohen & Steers Inc (CNS - Free Report) has been witnessing upward estimate revisions, for the past 30 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has rallied more than 15%, in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

Legg Mason, Inc. (LM - Free Report) has been witnessing upward estimate revisions, for the past 30 days. Also, the company’s shares have gained 5.4% in three months’ time. At present, it carries a Zacks Rank of 2 (Buy).

Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped 28.5% over the past three months. It currently sports a Zacks Rank #1.

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