Fidelity National Information Services
The 10-second takeaway
For the quarter ended March 31 (Q1), Fidelity National Information Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share increased. GAAP earnings per share expanded significantly.
Margins grew across the board.
Fidelity National Information Services logged revenue of $1.48 billion. The 15 analysts polled by S&P Capital IQ hoped for sales of $1.47 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.62. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. Non-GAAP EPS of $0.62 for Q1 were 13% higher than the prior-year quarter's $0.55 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.49 for Q1 were 69% higher than the prior-year quarter's $0.29 per share. (The prior-year quarter included -$0.01 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 31.8%, 180 basis points better than the prior-year quarter. Operating margin was 18.6%, 290 basis points better than the prior-year quarter. Net margin was 9.7%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $6.09 billion. The average EPS estimate is $2.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 119 members out of 137 rating the stock outperform, and 18 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 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 $40.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.