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Valued at a market cap of $42.3 billion, Fidelity National Information Services, Inc. (FIS) provides financial services technology solutions to financial institutions, businesses, and developers worldwide. Operating through segments such as Banking Solutions, Capital Market Solutions, and Merchant Solutions, FIS offers services like core processing, mobile banking, fraud management, and card payment solutions. The Jacksonville, Florida-based is expected to announce its fiscal Q4 earnings results on Monday, Feb. 24.
Ahead of this event, analysts expect the banking and payment technologies company to report a profit of $1.35 per share, up 43.6% from $0.94 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q3, the company exceeded the consensus EPS estimates by a margin of 8.5%.
For fiscal 2024, analysts expect FIS to report an EPS of $5.18, up 53.7% from $3.37 in fiscal 2023.
Shares of FIS have risen nearly 27% over the past 52 weeks, outpacing the S&P 500 Index's ($SPX) 25.5% surge. However, the stock has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 32.3% return over the same period.
On Nov. 4, FIS shares saw a marginal recovery following strong Q3 results. Adjusted EPS surged 48.9% year-over-year to $1.40, surpassing estimates, while revenue increased 3.2% to $2.6 billion, driven by growth in Banking Solutions and Capital Market Solutions through strong recurring revenue and new sales. The company demonstrated effective cost control, with SG&A expenses below projections and net interest expenses declining significantly by 60.5%. Moreover, FIS raised its 2024 guidance, forecasting revenue of $10.1 billion - $10.2 billion and adjusted EPS of $5.15 - $5.20, further bolstering investor confidence.
Analysts' consensus view on Fidelity National Information Services’ stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 13 recommend "Strong Buy," three give "Moderate Buy," 13 suggest "Hold," and one indicates “Strong Sell.” The average analyst price target for FIS is $94.92, indicating a 20.9% potential upside from the current levels.
