On February 11, 2025, Fidelity National Information Services (NYSE:FIS) reported earnings per share (EPS) of $1.40, surpassing the estimated $1.36. This performance highlights FIS's ability to exceed market expectations, as it also outperformed the Zacks Consensus Estimate of $1.35 per share. This marks a significant improvement from the $0.94 per share reported in the same quarter last year, showcasing a strong upward trend in earnings.
FIS's revenue for the quarter was approximately $2.6 billion, slightly below the estimated $2.63 billion. This represents a 1.27% shortfall from the Zacks Consensus Estimate. However, it is an increase from the $2.51 billion reported in the same quarter the previous year, indicating growth in the company's revenue stream. Despite the revenue miss, FIS's consistent ability to surpass EPS estimates over the past four quarters demonstrates its robust financial performance.
The company operates in the Financial Transaction Services industry and has made significant strides in executing its Future Forward strategy. In 2024, FIS completed the separation of Worldpay and sold a 55% stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR. This strategic move is part of FIS's efforts to streamline operations and focus on core business areas, as highlighted by CEO Stephanie Ferris.
FIS's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 44.20, indicating how the market values its earnings. Its price-to-sales ratio is 3.62, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is 3.69, offering a perspective on its overall valuation relative to sales. These figures suggest a strong market confidence in FIS's future growth prospects.
Despite a low debt-to-equity ratio of 0.10, indicating a relatively low level of debt compared to equity, FIS's current ratio of 0.85 may suggest potential liquidity concerns in meeting short-term obligations. However, the company's earnings yield of 2.26% and enterprise value to operating cash flow ratio of 10.31 provide a positive outlook on its earnings and cash flow relative to its enterprise value.
