Fidelity National Information Services
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Fidelity National Information Services met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins expanded, net margins dropped.
Fidelity National Information Services reported revenue of $1.44 billion. The 15 analysts polled by S&P Capital IQ looked for sales of $1.44 billion on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $1.43 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.63. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $0.30 for Q3 were 32% lower than the prior-year quarter's $0.44 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.6%, 160 basis points better than the prior-year quarter. Operating margin was 20.0%, 60 basis points better than the prior-year quarter. Net margin was 6.0%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $5.82 billion. The average EPS estimate is $2.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 119 members out of 136 rating the stock outperform, and 17 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Fidelity National Information Services a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fidelity National Information Services is outperform, with an average price target of $37.73.
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