FIS Set to Report Q4 Earnings with Solid Growth Ahead
Fidelity National Information Services, Inc. (FIS), with a market cap of $42.3 billion, is poised to deliver a strong quarterly earnings report on Monday, Feb. 24. The Jacksonville, Florida-based company specializes in financial services technology, providing solutions to banks, businesses, and developers around the globe. FIS operates through multiple segments, including Banking Solutions, Capital Market Solutions, and Merchant Solutions, offering services such as core processing, mobile banking, fraud management, and card payment solutions.
Analysts Anticipate Significant Growth in Profit
Ahead of its fiscal Q4 earnings release, analysts predict that FIS will report a profit of $1.35 per share, marking a 43.6% increase from $0.94 per share in the same quarter last year. The company has exceeded Wall Street’s earnings estimates in three of the past four quarters, although it missed forecasts once. In Q3, FIS outperformed consensus EPS estimates by 8.5%.
Forecasts Show Continued Positive Momentum for Fiscal 2024
Looking to fiscal 2024, analysts expect FIS to achieve an EPS of $5.18, a notable 53.7% increase from $3.37 in fiscal 2023.
Stock Performance Compared to Market Indices
FIS shares have increased nearly 27% over the past year, surpassing the S&P 500 Index ($SPX), which saw a 25.5% rise. Yet, FIS’s stock performance has trailed behind the Financial Select Sector SPDR Fund’s (XLF) 32.3% return during that same span.
Strong Q3 Results Boost Investor Confidence
On Nov. 4, FIS shares bounced back slightly following impressive Q3 results. Adjusted EPS skyrocketed 48.9% year-over-year to $1.40, surpassing expectations, while revenue grew by 3.2% to $2.6 billion. Growth in Banking and Capital Market Solutions, fueled by strong recurring revenue and new sales, played a crucial role in this performance. The company also displayed effective cost management, leading to reduced SG&A expenses and a significant 60.5% decline in net interest expenses. Furthermore, FIS raised its 2024 guidance, projecting revenue between $10.1 billion and $10.2 billion and adjusted EPS in the range of $5.15 to $5.20, further enhancing investor optimism.
Analysts Ponder ‘Moderate Buy’ for FIS
Generally, analysts express a cautiously optimistic stance on Fidelity National Information Services’ stock, rating it as a “Moderate Buy.” Of the 30 analysts covering FIS, 13 recommend a “Strong Buy,” 3 a “Moderate Buy,” 13 suggest a “Hold,” and 1 advises a “Strong Sell.” The average target price for FIS shares is $94.92, suggesting a potential upside of 20.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further information, please view the Barchart Disclosure Policy here. More news from Barchart
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