FIS Earnings Prediction
The chart below shows how FIS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FIS sees a +4.37% change in stock price 10 days leading up to the earnings, and a +1.92% change 10 days following the report. On the earnings day itself, the stock moves by -3.87%. This data can give you a slight idea of what to expect for the next quarter's release.
FIS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.57B
3.25%
3.25%
Gross Margin
38.02%
-2.04%
-0.50%
Operating Margin
24.47%
0.16%
7.23%
Net Margin
9.61%
-8.39%
-1.54%
EPS
0.41
153.95%
-6.82%
No Data Available
FIS Earnings Analysis
Fidelity National Information Services, Inc. Corporation (FIS.N) Earnings Conference Call
Positive
Recurring Revenue Acceleration: Adjusted revenue grew 4% in the third quarter, fueled by a strong acceleration in recurring revenue growth.
EBITDA Margin Expansion: Adjusted EBITDA margin of 41.3% exceeded our outlook, with both operating segments posting year-over-year margin expansion.
Recurring Sales Growth: We continue to focus on driving high-quality recurring sales, with cross-sell activity across the enterprise up over 20% year-to-date.
Earnings and Shareholder Returns: Adjusted EPS of $1.40 increased 13% year-over-year on a normalized basis and we returned a total of $700 million of capital to shareholders in the third quarter across both buybacks and dividends.
Digital Acquisition Progress: We also recently closed a small acquisition in the digital space, Dragonfly Technologies, as we make progress against our M&A goals.
Negative
Steady Adjusted Revenue Growth: Adjusted revenue growth was steady at 4% in the quarter, driven by an acceleration in recurring revenue growth, indicating a slowdown compared to previous periods.
EBITDA Margin Performance: Adjusted EBITDA margin exceeded expectations at 41.3%, offset by a tough year-over-year comparison in corporate expenses, suggesting potential pressure on future margins.
Adjusted EPS Increase Concerns: Adjusted EPS was $1.40 in the quarter, up 49% compared to the prior year, but this increase was primarily due to non-cash adjustments, raising concerns about sustainability.
Free Cash Flow Impact: Free cash flow was impacted by an increase in capital expenditures to 9% in the quarter, indicating potential strain on cash generation capabilities going forward.
High Indebtedness Concerns: Total debt at the end of the quarter was $10.9 billion, with a leverage ratio of 2.6 times, suggesting a high level of indebtedness that could limit financial flexibility.
FIS FAQs
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FIS Earning Call Sentiment
Fidelity National Information Services, Inc. (FIS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
FIS.N
2.37%Positive
The earnings call summary indicates strong financial performance with increased recurring revenue and banking revenue at the higher end of expectations. The Q&A section supports stable growth, particularly in core banking and capital markets, and management's confidence in future performance. While there were some unclear responses, overall sentiment is positive due to raised EPS outlook, strong partnerships, and increased share repurchase plans. Despite minor uncertainties, the positive aspects outweigh the negatives, suggesting a positive stock price movement over the next two weeks.