Fidelity National Info Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Fidelity National Info (NYSE:FIS) will unveil its latest earnings on Monday, November 5, 2012. Fidelity National Information Services offers technology solutions, processing services to the financial services industry.

Fidelity National Info Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 60 cents per share, a decline of 3.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 60 cents during the last month. Analysts are projecting profit to rise by 4.4% versus last year to $2.37.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 66 cents per share against a mean estimate of profit of 57 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, profit rose 21.9% to $150.6 million (50 cents a share) from $123.5 million (40 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.1% to $1.46 billion from $1.44 billion.

Stock Price Performance: From October 2, 2012 to October 30, 2012, the stock price rose $1.64 (5.3%), from $30.98 to $32.62. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 30, 2012, when shares rose for 11 straight days, increasing 6% (+$1.62) over that span. It saw one of its worst periods between September 21, 2012 and October 1, 2012 when shares fell for seven straight days, dropping 5.4% (-$1.75) over that span.

Analyst Ratings: With seven analysts rating the stock as a buy, none rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.3% in the third quarter of the last fiscal year, 7% in the fourth quarter of the last fiscal year and 4.6% in the first quarter before increasing again in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 11.3% for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $1.44 billion in revenue this quarter, a rise of 0.7% from the year-ago quarter. Analysts are forecasting total revenue of $5.82 billion for the year, a rise of 1.2% from last year’s revenue of $5.75 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.92 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.6 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 22.1% to $2.16 billion while liabilities rose by 1.5% to $1.12 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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