What's In Store For Fidelity National (FIS) In Q4 Earnings?

Fidelity National Information Services (NYSE:FIS) is scheduled to release fourth quarter and 2017 earnings on Feb 6, before the opening bell. While the company’s earnings are expected to grow on a year-over-year basis, revenues are likely to decline.

Notably, Fidelity delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 5.3%.

Last quarter, the company pulled off a positive earnings surprise of 11.3%. Results benefited from lower expenses and a strong liquidity position. However, decline in revenues was a headwind.

Fidelity National Information Services, Inc. Price and EPS Surprise

Factors to Influence Q4 Results

Fidelity’s service revenues are expected to increase because of higher U.S. debit and credit card payment volumes. However, per the consensus estimate, rise in revenues from Integrated Financial Solutions of nearly 3% to $1.2 billion will be offset by a decline in revenues in Global Financial Solutions of 4.5% to $1.1 billion. Also, the consensus estimate for overall revenues of $2.4 billion indicates a 3.1% decline from the prior-year quarter.

The company’s focus on introducing new and innovative products in order to meet the growing demand of customers will likely increase expenses, as witnessed in the past.

The Florida-based financial service provider’s earnings are expected to benefit this quarter on the back of synergies from the SunGard acquisition. During last-quarter earnings, the company had updated guidance for adjusted earnings per share for 2017 to $4.38-$4.43 from $4.22-$4.32.

Earnings Whisper

According to our proven model, Fidelity does not have the right combination of two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase 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.

Zacks ESP: Earnings ESP for Fidelity is -1.63%.

Zacks Rank: Fidelity carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Also, Fidelity’s activities during the quarter were inadequate to win analysts’ confidence. As a result, earnings estimates for the quarter remained unchanged at $1.34, over the last seven days.

Notably, for the fourth quarter, the Zacks Consensus Estimate indicates17.5% growth in earnings on a year-over-year basis.

Earnings Schedule of Other Stocks

Moelis & Company (NYSE:MC) is scheduled to report results on Feb 7 while Arlington Asset Investment Corp. (NYSE:AI) and GAIN Capital Holdings (NYSE:GCAP) are scheduled to report on Feb 6 and Mar 8, respectively.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>