Fidelity National Information Services, Inc. FIS is slated to report first-quarter 2023 results on Apr 27, before the opening bell.

Q1 Estimates

The Zacks Consensus Estimate for Fidelity National’s first-quarter earnings per share (EPS) is pegged at $1.20, which indicates a decline of 18.4% from the prior-year quarter’s reported figure. We estimate EPS to drop 20.6% year over year to $1.17 in the to-be-reported quarter.

The consensus mark for revenues stands at $3,404 million, suggesting 2.5% fall from the year-ago quarter’s reported number. We project revenues to decrease 3.1% year over year to $3,381.8 million.

Earnings Surprise History

Fidelity National has a decent earnings surprise history. Its bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 0.62%. This is depicted in the chart below:

Fidelity National Information Services, Inc. Price and EPS Surprise

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

What Our Quantitative Model Unveils

Our proven model predicts an earnings beat for Fidelity National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.

Earnings ESP: Fidelity National has an Earnings ESP of +0.69% because the Most Accurate Estimate of $1.21 is pegged higher than the Zacks Consensus Estimate of $1.20. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: FIS carries a Zacks Rank of 2.

Factors to Note

Prudent investments in innovative technologies and an enhanced digital solutions suite are likely to have boosted operational efficiencies and expanded the customer base for Fidelity National in the first quarter. However, such technology upgrades escalate the expense level, which in turn, might have eroded its margins.

Feeble contributions from its Banking Solutions and Merchant Solutions segments are expected to have dampened FIS’s top-line growth. Lower-margin revenue mix and cost inflation might have acted as a common drag on the segments’ quarterly performance. Nevertheless, the downside is likely to have been partly offset by strong recurring revenues resulting from new client wins across the Banking Solutions unit and expanding transaction volumes within its Merchant Solutions business.

The Zacks Consensus Estimate for the Banking Solutions unit’s first-quarter revenues is pegged at $1,619 million, which indicates a 1.6% decrease from the prior-year quarter’s reported figure. We expect the same to fall 2.3% year over year to $1,607.7 million.