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Post Earnings Coverage as Fidelity Revenue Increased 30.4% on Reported Basis; Diluted EPS Soared 80%

Friday, 24 February 2017 08:15 AM

Active Wall Street

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Upcoming AWS Coverage on Sabre Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 24, 2017 / Active Wall St. announces its post-earnings coverage on Fidelity National Information Services, Inc. (NYSE: FIS) ("Fidelity"). The company reported its financial results for the fourth and full year fiscal 2016 (FY16) on February 07, 2017. The banking and payment technologies Company's earnings met market expectations. "One year after the acquisition of SunGard, the combination is surpassing our goals on all dimensions," said Gary Norcross, Fidelity's President and Chief Executive Officer. Register with us now for your free membership at:

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One of Fidelity National Information Services' competitors within the Information Technology Services space, Sabre Corp. (NASDAQ: SABR), announced on February 07, 2017, its financial results for the quarter and full year ended December 31, 2016. AWS will be initiating a research report on Sabre in the coming days.

Today, AWS is promoting its earnings coverage on FIS; touching on SABR. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended December 31, 2016, Fidelity's revenue increased 30.4 % on a reported basis to $2.45 billion from $1.88 billion in Q4 2015, while the Company's organic revenue increased 4.8%. The Company's revenue number slightly missed analysts' consensus of $2.47 billion. Fidelity's FY16 revenue increased 40.1% on a reported basis to $9.24 billion from $6.60 billion in the prior year's same period.

For Q4 2016, Fidelity's net earnings from continuing operations attributable to common stockholders was $207 million compared to $105 million in Q4 2015. Diluted EPS from continuing operations was $0.63 in Q4 2016 up 80% compared to $0.35 in Q4 2015. The Company's adjusted net earnings from continuing operations attributable to common stockholders was $377 million for the reported quarter, or $1.14 per share up 22.6% compared to $0.93 per share in the prior year's corresponding quarter and in-line with market estimates.

Fidelity's net earnings from continuing operations attributable to common stockholders were $567 million for FY16 compared to $639 million in the prior year's same period. Diluted EPS from continuing operations was $1.72 for the reported year compared to $2.21 in the prior year's comparable period. Adjusted net earnings from continuing operations attributable to common stockholders was $1.3 billion for the year, or $3.82 per share, compared to $3.22 per share in the prior year's same period, which was also an increase of 18.6 %.

Fidelity's adjusted EBITDA increased 15.2% to $846 million for the reported quarter from $734 million adjusted combined EBITDA in the prior year's same quarter. The Company's adjusted EBITDA increased 11.1 % to $2.9 billion in the year from $2.7 billion adjusted combined EBITDA in the prior year's comparable period.

Segment Information

For Q4 2016, Fidelity's Integrated Financial Solutions (IFS) generated revenue of $1.2 billion, up 11.1% from $1.0 billion in Q4 2015, while organic revenue grew 2.5%. The segment's adjusted EBITDA increased 5.0% to $478 million from $455 million adjusted combined EBITDA in Q4 2015. Adjusted combined EBITDA for Q4 2015 was $31 million greater than adjusted EBITDA in Q4 2015 due to the acquisition of SunGard on November 30, 2015. IFS' reported revenue grew 18.7% to $4.6 billion in FY16 from $3.8 billion in the prior year's same period. Adjusted EBITDA increased 4.2% to $1.8 billion from $1.7 billion adjusted combined EBITDA in the prior year's corresponding period.

Global Financial Solutions (GFS)'s Q4 2016 reported revenue grew 51.6% to $1.1 billion from $754 million in Q4 2015, while it increased 7.7% on an organic basis. The segment's adjusted EBITDA increased 31.3% to $412 million from $313 million adjusted combined EBITDA in the prior year's same quarter, and adjusted EBITDA margin was 36.0 %. GFS' FY16 reported revenue surged 80.0% to $4.2 billion from $2.4 billion in the prior year's comparable period. Organic revenue grew 5.0 %. Adjusted EBITDA increased 17.2 % to $1.3 billion from $1.1 billion adjusted combined EBITDA in the prior year's same period, and adjusted EBITDA margin was 30.4%.

Fidelity's Corporate / Other segment reported revenue increased 83.7% to $144 million in Q4 2016 compared to $78 million in the prior year's comparable quarter. Organic revenue increased 1.3 %. Adjusted EBITDA loss was $44 million and is inclusive of $88 million of corporate expenses. The Company's FY16 reported revenue increased 9.1 % to $425 million compared to $390 million in the prior year's same period. Organic revenue declined 1.4 %. Adjusted EBITDA loss was $158 million and is inclusive of $316 million of corporate expenses.

Balance Sheet and Cash Flow

As of December 31, 2016, Fidelity's cash and cash equivalents totaled $683 million and debt outstanding totaled $10.5 billion. The Company's Q4 2016 net cash provided by operating activities was $583 million and free cash flow was $435 million. For FY16, Fidelity's net cash provided by operating activities was $1.9 billion and free cash flow was $1.5 billion. The Company reduced outstanding debt by $1.0 billion in the reported year.

Fidelity paid dividends totaling $86 million in Q4 2016 and $341 million in FY16.

Stock Performance

At the close of trading session on Thursday, February 23, 2017, Fidelity National Information Services' stock price marginally rose 0.33% to end the day at $83.09. A total volume of 1.51 million shares were exchanged during the session. The Company's share price has surged 3.82% in the past one month and has gained 9.85% on YTD basis. The stock currently has a market cap of $27.16 billion. Furthermore, the stock is trading at a PE ratio of 48.14 and has a dividend yield of 1.40%.

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