What's in Store for Fidelity National (FIS) in Q3 Earnings?

Fidelity National Information Services FIS is scheduled to release third-quarter 2020 earnings on Oct 29, before the bell. While its revenues are expected to have improved year over year, earnings might have declined.

Notably, Fidelity delivered positive earnings surprises in three of the trailing four quarters and in-line numbers in one, the average beat being 3.31%.

In the last reported quarter, the company’s results surpassed the Zacks Consensus Estimate. Expanding margin was a key tailwind. However, significant rise in expenses and lower revenues were deterrents.


Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote


Key Factors

Fidelity is likely to have witnessed strong revenue growth in the July-September quarter as underlying business trends were robust. The Zacks Consensus Estimate for revenues of $3.18 billion implies rise of 12.7% from the prior-year reported figure.

This Florida-based financial service provider’s bottom line might have been disappointing given the fall in interest rates due to the coronavirus mayhem.

The company’s focus on rolling out innovative products in order to meet customers’ rising demand might have inflated expenses.

Fidelity’s shares have gained 7.5% in the three-month period ended Sep 30, 2020, compared with the industry’s growth of 5.8%.

Will the upcoming earnings release give a boost to Fidelity’s stock? That depends largely on whether or not the firm is able to impress the market with its third-quarter results.

Here is what our quantitative model predicts:

Fidelity does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Fidelity is -0.12%.

Zacks Rank: Fidelity currently carries a Zacks Rank of 3.

Notably, the Zacks Consensus Estimate for the third-quarter earnings suggests a 1.4% fall from the year-ago reported number.

Stocks to Consider

CullenFrost Bankers, Inc. CFR is scheduled to release quarterly earnings on Oct 29. The company, which carries a Zacks Rank #3 currently, has an Earnings ESP of +1.57%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BankUnited, Inc. BKU is set to release quarterly results on Oct 28. The company currently has an Earnings ESP of +6.10% and a Zacks Rank of 3.

The Earnings ESP for Invesco Ltd. IVZ is +2.02% and the company presently carries a Zacks Rank #3. It is scheduled to report quarterly numbers on Oct 27.

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Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report
Invesco Ltd. (IVZ): Free Stock Analysis Report
BankUnited, Inc. (BKU): Free Stock Analysis Report
CullenFrost Bankers, Inc. (CFR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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