Fidelity National Information Services Set to Report Strong Earnings Growth
Fidelity National Information Services, Inc. (FIS), located in Jacksonville, Florida, is a prominent player in the financial technology arena. With a market cap of $50.02 billion, FIS offers a wide range of banking, payment processing, and capital markets solutions that cater to the changing needs of businesses and financial institutions worldwide. The upcoming Q3 earnings release is scheduled for Tuesday, Nov. 5.
Anticipated Earnings and Recent Performance
Analysts predict FIS will report a profit of $1.29 per share, reflecting a 37.2% increase from last year’s $0.94 in the same quarter. Over the past four quarters, FIS has exceeded Wall Street’s earnings per share (EPS) predictions twice while falling short on two occasions.
The company’s adjusted earnings for the last quarter reached $1.36 per share, surpassing expectations by 10.6%. This positive surprise is attributed to effective cost management strategies and operational improvements.
Future Projections Look Bright
Looking ahead to fiscal 2024, experts forecast FIS will achieve an EPS of $5.09, a notable increase of 51% from the $3.37 recorded in fiscal 2023.
Stock Performance: A Notable Upward Trend
FIS stock has seen a remarkable rise, up 51.4% year-to-date, significantly outpacing the broader S&P 500 Index’s 23% gains and the Global X FinTech ETF’s (FINX) 16% returns during the same period.
On Aug. 6, FIS shares closed up more than 5% following the release of its Q2 results, where the company reported revenue of $2.49 billion, aligning with Wall Street’s forecasts. Additionally, FIS raised its revenue outlook for the full year, now expecting figures between $10.12 billion and $10.17 billion.
Analyst Ratings and Market Outlook
The general sentiment toward FIS stock is cautiously optimistic, receiving an overall “Moderate Buy” rating. Among 29 analysts covering the company, 13 suggest a “Strong Buy,” 2 recommend a “Moderate Buy,” and 14 propose a “Hold.” Currently, the average analyst price target is set at $87.38, indicating the stock trades at a premium.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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