Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Raymond (NSE:RYMD) James analyst made adjustments to the financial outlook for Fidelity National Information Services (NYSE:FIS), reducing the price target to $78.00 from the previous $101.00. Despite the cut in the price target, the firm maintained its Outperform rating on the company’s shares. According to InvestingPro analysis, FIS is currently trading below its Fair Value, with a market capitalization of $39.73 billion and a perfect Piotroski Score of 9, indicating strong financial health.
The revision follows Fidelity National Information Services’ fourth-quarter results, which showed revenues slightly below expectations by approximately 1%. The adjusted earnings per share (EPS) exceeded analysts’ predictions by about 3%, but this was attributed to a higher contribution from World EMI. The adjusted EBITDA was in line with expectations. The company’s total revenue stands at $10.03 billion for the last twelve months, with a gross profit margin of 38.06%. Notably, the company’s foreign exchange (FX) adjusted organic Banking revenue growth saw a deceleration of around 200 basis points, and adjusted revenue was roughly 300 basis points below the consensus. This shortfall was partly due to a reversal of a termination fee and a deferral of license revenue.
Furthermore, while Banking growth is projected to pick up to around 4% in 2025, the guidance for the first quarter is set at just about 1%. However, the company’s strong sales momentum, which includes record core wins and a 9% increase in new sales, might help close this gap.
The initial guidance for 2025 matched expectations and is unlikely to lead to significant changes in estimates. However, the analyst anticipates that the stock will face short-term challenges, as it has become a "show-me story" once more. The current trading valuation of the stock at approximately 9 times the 2026 estimated EBITDA and 11 times the estimated EPS suggests a favorable risk/reward balance over the medium term. Nevertheless, the analyst noted that investors might need to be patient and wait for the management to demonstrate the expected acceleration in performance.
In other recent news, Fidelity National Information Services reported fourth-quarter results that exceeded earnings expectations but fell short on revenue. The financial technology company posted adjusted earnings per share of $1.40, surpassing the consensus forecast of $1.36. However, revenue of $2.6 billion missed expectations of $2.63 billion. For the first quarter of 2025, FIS projects EPS of $1.17-$1.22 and revenue of $2.485-$2.51 billion, both below analyst estimates. Full-year 2025 guidance was also below expectations, with EPS forecast at $5.70-$5.80 and revenue projected at $10.435-$10.495 billion. FIS repurchased $1 billion of shares in Q4, and plans to repurchase approximately $1.2 billion of shares in 2025. These are among the recent developments in the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.