Fidelity National Information Services, Inc. FIS is set to report fourth-quarter 2024 results on Feb. 11, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) is currently pegged at $1.35 on revenues of $2.63 billion.

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The fourth-quarter earnings estimate has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 43.6%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 4.9%.

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For the current year, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $10.6 billion, implying growth of 4.2% year over year. However, the consensus mark for current year EPS is pegged at $5.73, implying a jump of around 11% on a year-over-year basis.

Fidelity National beat the consensus estimate for earnings in three of the last four quarters and missed on the other occasion, with the average surprise being negative 8.2%.

Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote

Q4 Earnings Whispers for FIS

Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s precisely the case here.

Fidelity National has an Earnings ESP of +0.41% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping FIS’ Q4 Results?

Fidelity National's fourth-quarter performance is poised to capitalize on the global digital transformation trend and growing transactions. Its strategic investments in mobile banking and expanded product offerings align with evolving consumer preferences, enhancing financial results.

The Zacks Consensus Estimate for revenues from the Banking Solutions segment indicates 4.7% year-over-year growth, whereas our model estimate suggests a 4.6% increase. The Zacks Consensus Estimate for the segment’s adjusted EBITDA indicates a 5.4% increase from the year-ago quarter’s reported figure.

The company’s long-established relationships with financial and commercial institutions help it generate recurring revenues. Strong recurring revenue growth in both segments and new sales momentum are likely to have aided its fourth-quarter results. The Zacks Consensus Estimate for the Capital Market Solutions segment revenues suggests a 7% increase year over year, while our model estimate suggests 7.2% growth.

The consensus mark for Capital Market Solutions’ adjusted EBITDA indicates an 8.2% increase from the year-ago figure, whereas we expect it to grow 7.7%. The company’s investments in technology and innovation across high-growth markets are anticipated to have helped expand its total addressable market in the quarter under review. These factors are likely to have positioned the company for not only year-over-year growth but also an earnings beat.

However, expenses are likely to have risen due to the investments. The company is expected to have witnessed increased costs related to improvement works in platforms and applications and some inflationary pressures. Our estimate for the cost of revenues is pegged at $1.55 billion. We expect SG&A expenses to grow 0.1% year over year in the quarter. These are likely to have partially offset the positives.

Stocks That Warrant a Look

Here are some companies from 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:

Genpact Limited G has an Earnings ESP of +1.83% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Genpact’s earnings for the to-be-reported quarter is pegged at 77 cents per share, which remained stable over the past week. The consensus estimate for G’s revenues is pegged at $1.2 billion.

S&P Global Inc. SPGI has an Earnings ESP of +1.32% and a Zacks Rank of 2.

The Zacks Consensus Estimate for S&P Global’s bottom line for the to-be-reported quarter indicates a 9% improvement from a year ago. The consensus mark for SPGI’s revenues signals 10.3% growth year over year.

TransUnion TRU has an Earnings ESP of +0.27% and a Zacks Rank of 3.

The Zacks Consensus Estimate for TransUnion’s bottom line for the to-be-reported quarter is pegged at 96 cents per share, indicating a 20% increase from the year-ago period. TRU beat earnings estimates in each of the past four quarters, with an average surprise of 7.3%.

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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report

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