Fidelity National Information Services Inc. Earnings Cheat Sheet: Three-Quarter Expanding Margin Streak Ends, but Net Income Climbs

S&P 500 (NYSE:SPY) component Fidelity National Information Services, Inc. (NYSE:FIS) reported its results for the third quarter. Fidelity National Information Services offers technology solutions, processing services to the financial services industry.

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Fidelity National Information Services Earnings Cheat Sheet for the Third Quarter

Results: Net income for Fidelity National Information Services, Inc. rose to $136.3 million (44 cents per share) vs. $110.4 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 23.5% from the year earlier quarter.

Revenue: Rose 4% to $1.43 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FIS reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. It fell exactly in line with the average revenue estimate of $1.43 billion.

Quoting Management: “Excellent growth in International Solutions drove solid top-line performance and contributed to the strong 19.2% growth in adjusted earnings per share in the third quarter,” stated Frank Martire, president and chief executive officer, FIS. “We remain focused on providing solutions that enable our clients to drive growth, optimize efficiency and meet their overall business objectives.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 12.1% to $1.44 billion in the second quarter. The figure rose 10.7% in the first quarter from the year earlier and climbed 8.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 55 cents versus a mean estimate of net income of 54 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 70 cents per share, down from 71 cents ninety days ago. In the past seven days, the average estimate for the fiscal year has declined from $2.30 per share to $2.29.

Competitors to Watch: Visa Inc. (NYSE:V), Alliance Data Systems Corp. (NYSE:ADS), MasterCard Incorporated (NYSE:MA), American Express Company (NYSE:AXP), NetSpend Holdings Inc (NASDAQ:NTSP), Green Dot Corporation (NYSE:GDOT), Global Payments Inc. (NYSE:GPN), Intl. Business Machines Corp. (NYSE:IBM), M & F Worldwide Corp. (NYSE:MFW), and Total System Services, Inc. (NYSE:TSS).

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(Source: Xignite Financials)

 

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