Sell Fidelity National Information Services (FIS)
Fidelity National (FIS) reported fourth-quarter earnings of $1.40 a share that beat estimates by 3% and revenue of $2.6 billion that disappointed expectations by 1%. However, the company’s sales and earnings outlook were a lot less than investors were expecting, which prompted a massive 17% sell-off in the stock.
For Q1, Fidelity National guided for EPS of $1.20 at the midpoint, or 6% below consensus, while expected revenue of $2.5 billion was 3% below consensus. Moreover, management expects full-year 2025 revenue and earnings to be below Wall Street’s consensus expectations.
This stock is a legacy member of the portfolio and was initiated in December 2023 by one of my predecessors at 55.50 a share, meaning it’s still up by 24% from the initial purchase price. As I have no desire to hold this particular stock down to a potential loss, I’m recommending that we sell the remaining half of our position in FIS (after our previous half-position profit was taken back in September). SELL
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