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Fidelity (FIS) to Report Q3 Earnings: What's in the Cards?
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Fidelity National Information Services, Inc. (FIS - Free Report) is set to report third-quarter 2022 results on Nov 3, before the opening bell.
In the last reported quarter, the financial solutions provider’s adjusted earnings per share of $1.73 beat the Zacks Consensus Estimate by 1.8% due to strong performances across all segments. Large client wins and new sales momentum were some of the major positives in the quarter despite facing an uncertain macro environment.
The Zacks Consensus Estimate for third-quarter earnings per share of $1.75 has witnessed one upward movement in the past week and none in the opposite direction. The estimate is indicative of a 1.2% improvement from the year-ago quarter’s reported earnings of $1.73 per share. The Zacks Consensus Estimate for revenues is pegged at $3.6 billion, suggesting a rise of 2.9% from the year-ago quarter’s reported figure.
Fidelity National’s earnings beat estimates in each of the trailing four quarters, the average being 1.8%. 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 third 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.
Fidelity National’s acquisition of Payrix is likely to have supported its Banking Solutions unit’s profits. The Zacks Consensus Estimate for third-quarter adjusted EBITDA from this unit suggests a 3.2% increase from the prior quarter’s reported figure. Also, the consensus estimate for the segment signals a 3.7% year-over-year rise.
In the third quarter, cross-border travel is likely to have witnessed a sharp increase. This is expected to have boosted the demand for FIS’ e-commerce payment gateway and the new payment platform. As such, the consensus estimate for adjusted EBITDA in Merchant Solutions indicates a 4.5% year-over-year rise. This is anticipated to have positioned the company for year-over-year growth in profits. The consensus estimate for segmental revenues indicates a 4.1% year-over-year increase.
However, the consensus mark for the Capital Market Solutions unit’s adjusted EBITDA signals a 2.2% decrease from the year-ago quarter’s reported figure. Also, the upgradations of platforms and applications are expected to have increased the company’s costs in the September-end quarter.
Also, 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, 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 -0.33%. The Most Accurate Estimate is currently pegged at $1.74 per share, lower than the Zacks Consensus Estimate of $1.75.
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 #4 (Sell).
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 Shift4 Payments’ bottom line for the to-be-reported quarter indicates a year-over-year rise of 61.5%. FOUR beat earnings estimates twice in the trailing four quarters, met once and missed on another occasion, the average surprise being 4.2%.
Riot Blockchain, Inc. (RIOT - Free Report) currently has an Earnings ESP of +129.17% and a Zacks Rank #3.
The Zacks Consensus Estimate for Riot Blockchain’s bottom line for the to-be-reported quarter improved 50% over the past two months. The consensus mark for RIOT’s top line is pegged at $58.4 million for the quarter.
TTEC Holdings, Inc. (TTEC - Free Report) has an Earnings ESP of +1.64% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for TTEC Holdings’ bottom line for the to-be-reported quarter is pegged at 61 cents per share. TTEC beat earnings estimates in each of the trailing four quarters, with an average surprise of 10.5%.
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Fidelity (FIS) to Report Q3 Earnings: What's in the Cards?
Fidelity National Information Services, Inc. (FIS - Free Report) is set to report third-quarter 2022 results on Nov 3, before the opening bell.
In the last reported quarter, the financial solutions provider’s adjusted earnings per share of $1.73 beat the Zacks Consensus Estimate by 1.8% due to strong performances across all segments. Large client wins and new sales momentum were some of the major positives in the quarter despite facing an uncertain macro environment.
Let’s see how things have shaped up prior to the third-quarter 2022 earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of $1.75 has witnessed one upward movement in the past week and none in the opposite direction. The estimate is indicative of a 1.2% improvement from the year-ago quarter’s reported earnings of $1.73 per share. The Zacks Consensus Estimate for revenues is pegged at $3.6 billion, suggesting a rise of 2.9% from the year-ago quarter’s reported figure.
Fidelity National’s earnings beat estimates in each of the trailing four quarters, the average being 1.8%. 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 third 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.
Fidelity National’s acquisition of Payrix is likely to have supported its Banking Solutions unit’s profits. The Zacks Consensus Estimate for third-quarter adjusted EBITDA from this unit suggests a 3.2% increase from the prior quarter’s reported figure. Also, the consensus estimate for the segment signals a 3.7% year-over-year rise.
In the third quarter, cross-border travel is likely to have witnessed a sharp increase. This is expected to have boosted the demand for FIS’ e-commerce payment gateway and the new payment platform. As such, the consensus estimate for adjusted EBITDA in Merchant Solutions indicates a 4.5% year-over-year rise. This is anticipated to have positioned the company for year-over-year growth in profits. The consensus estimate for segmental revenues indicates a 4.1% year-over-year increase.
However, the consensus mark for the Capital Market Solutions unit’s adjusted EBITDA signals a 2.2% decrease from the year-ago quarter’s reported figure. Also, the upgradations of platforms and applications are expected to have increased the company’s costs in the September-end quarter.
Also, 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, 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 -0.33%. The Most Accurate Estimate is currently pegged at $1.74 per share, lower than the Zacks Consensus Estimate of $1.75.
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 #4 (Sell).
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:
Shift4 Payments, Inc. (FOUR - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Shift4 Payments’ bottom line for the to-be-reported quarter indicates a year-over-year rise of 61.5%. FOUR beat earnings estimates twice in the trailing four quarters, met once and missed on another occasion, the average surprise being 4.2%.
Riot Blockchain, Inc. (RIOT - Free Report) currently has an Earnings ESP of +129.17% and a Zacks Rank #3.
The Zacks Consensus Estimate for Riot Blockchain’s bottom line for the to-be-reported quarter improved 50% over the past two months. The consensus mark for RIOT’s top line is pegged at $58.4 million for the quarter.
TTEC Holdings, Inc. (TTEC - Free Report) has an Earnings ESP of +1.64% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for TTEC Holdings’ bottom line for the to-be-reported quarter is pegged at 61 cents per share. TTEC beat earnings estimates in each of the trailing four quarters, with an average surprise of 10.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.