Fidelity National Information Services
The 10-second takeaway
For the quarter ended June 30 (Q2), Fidelity National Information Services met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Fidelity National Information Services logged revenue of $1.51 billion. The 17 analysts polled by S&P Capital IQ expected to see revenue of $1.53 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 $0.71. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share. Non-GAAP EPS of $0.71 for Q2 were 7.6% higher than the prior-year quarter's $0.66 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.36 for Q2 were 28% lower than the prior-year quarter's $0.50 per share. (The prior-year quarter included -$0.02 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 32.0%, 70 basis points worse than the prior-year quarter. Operating margin was 16.4%, 300 basis points worse than the prior-year quarter. Net margin was 6.9%, 340 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $6.08 billion. The average EPS estimate is $2.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 140 rating the stock outperform, and 17 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Fidelity National Information Services a green thumbs-up, and two 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 $44.67.
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