[ACCESSWIRE]
Upcoming AWS Coverage on NCR Corp. Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 10, 2016 / Active Wall St. announces its post-earnings coverage on Fidelity National Information Services, Inc. (NYSE: FIS). The company posted its financial results for the third quarter fiscal 2016 on November 01st, 2016. The banking and payment technologies company's revenue advanced but was heavily skewed as a result of the acquisition of SunGard which was completed in November 2015. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Fidelity National Information Services' competitors within the Information Technology Services space, NCR Corp. (NYSE: NCR), reported financial results on October 25, 2016, for the three months ended September 30, 2016. AWS will be initiating a research report on NCR Corp. in the coming days.
Today, AWS is promoting its earnings coverage on FIS; touching on NCR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=FIS
http://www.activewallst.com/registration-3/?symbol=NCR
Earnings Reviewed
For the three months ended on September 30, 2016, Fidelity's revenue increased 46.2% on a reported basis to $2.3 billion from $1.6 billion in the prior year's quarter; however the numbers missed analysts' forecasts of $2.363 billion. Operating income increased 17.7% to $398 million in Q3 2016 from $338 million in the prior year's quarter, with operating income margin of 17.2% the reported quarter. During Q3 2016, Fidelity's net earnings from continuing operations attributable to common stockholders was $185 million, or $0.56 per diluted share, compared to $175 million, or $0.62 per diluted share, in the prior year's quarter, a decrease of 9.7% on a per share basis. Adjusted net earnings from continuing operations attributable to common stockholders was $330 million for Q3 2016, or $1.00 per share, compared to $0.90 per share in the prior year's period; higher by 11.1% and topping market projections of $0.98 per share.
For Q3 2016, Fidelity's organic revenue increased 3.8%. Adjusted EBITDA increased 7.7% to $766 million in Q3 2016 from $712 million adjusted combined EBITDA in the prior year's quarter, while adjusted EBITDA margin was 32.7%. Fidelity noted that the comparisons of reported results for 2016 to those in 2015 were significantly impacted by the acquisition of SunGard, which closed on November 30, 2015, and will continue to have an impact for the remainder of 2016.
Segment Performance
During Q3 2016, revenue from Fidelity's Integrated Financial Solutions (IFS) segment grew 19.2% to $1.1 billion from $944 million reported in the prior year's quarter. Organic revenue grew 4.1%. Adjusted EBITDA increased 1.0% to $457 million from $453 million adjusted combined EBITDA in the prior year's quarter, and adjusted EBITDA margin was 40.7%.
For its Global Financial Solutions division, Fidelity reported that revenue almost doubled by 98.1% to $1.1 billion in Q3 2016 from $539 million reported in the prior year's quarter. The segment's organic revenue grew 4.5%. Global Financial Solutions adjusted EBITDA increased 13.3% to $343 million from $303 million adjusted combined EBITDA in the prior year's quarter, and adjusted EBITDA margin was 32.1%.
During Q3 2016, revenue from Fidelity's Corporate/ Other segment increased 21.4% to $117 million compared to $96 million in the comparable year ago quarter. Organic revenue declined 1.9%. The segment's adjusted EBITDA loss was $34 million and is inclusive of $75 million of corporate expenses.
Financials
As of September 30, 2016, Fidelity's cash and cash equivalents totaled $701 million and debt outstanding totaled $10.8 billion. During Q3 2016, net cash provided by operating activities was $522 million and free cash flow was $426 million. The company paid dividends in Q3 2016 totalling $84 million.
Outlook
For FY16, Fidelity narrowed its organic revenue growth forecast range to approximately 4.5% from the previously announced guidance of 4% to 5%; and adjusted EPS projection of $3.80 to $3.85 versus prior guidance of $3.75 to $3.85.
Stock Performance
Fidelity National Information Services' share price finished yesterday's trading session at $76.90, slightly up 0.39%. A total volume of 1.57 million shares exchanged hands. The stock has advanced 7.89% and 17.41% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have gained 28.31%. The stock is trading at a PE ratio of 53.11 and has a dividend yield of 1.35%.
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SOURCE: Active Wall Street
