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What's in Store for Fidelity National's (FIS) Q1 Earnings?

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Fidelity National Information Services (FIS - Free Report) is scheduled to release first-quarter 2020 earnings on May 7, before the 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 and in-line numbers in the other, the average positive beat being 3.09%.

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 strong revenue-growth performance for the January-March quarter as underlying business trends remained robust. Notably, overall revenues of $3.1 billion are projected to surge 49.7% from the prior-year quarter.

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

The company’s focus on rolling out innovative products in order to meet customers’ rising demand might have inflated expenses.

Fidelity’s shares have lost 12.5% in the three-month period ended Mar 31, 2020, compared with the industry’s decline of 18.3%.

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 first-quarter results.

Here is what our quantitative model predicts:

Fidelity does not have 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 0.00%.

Zacks Rank: It currently carries a Zacks Rank of 3.

Notably, the Zacks Consensus Estimate for the first-quarter earnings suggests a 22.6% decline on a year-over-year basis.

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GAIN Capital Holdings, Inc. has been recording upward estimate revisions, for the past 30 days. Also, the company’s shares have gained 43.6% in six months’ time. At present, it flaunts a Zacks Rank of 1.

Tradeweb Markets Inc. (TW - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has rallied 32.3% over the past six months. It currently sports a Zacks Rank #1.

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