Selected stock price target news of the day - November 6th, 2024

By: Matthew Otto

FIS Exceeds Q3 Earnings Expectations, Raises Full-Year EPS and Revenue Guidance

Fidelity National Information Services reported third-quarter 2024 earnings, delivering an adjusted EPS of $1.40, which exceeded analyst expectations by $0.11. Revenue for the quarter reached $2.57 billion, slightly surpassing the consensus estimate of $2.56 billion.

On a GAAP basis, diluted earnings per share rose 7% to $0.45, while adjusted EPS showed a 49% increase compared to the prior-year period. Revenue grew by 3% on a GAAP basis and by 4% on an adjusted basis, with Banking Solutions contributing $1.8 billion, reflecting a 3% increase, and Capital Market Solutions generating $730 million, marking an 8% increase. FIS repurchased $500 million of shares during the quarter, adding to a total of $3.0 billion in share buybacks year-to-date.

For full-year 2024, FIS raised its EPS guidance to a range of $5.15 to $5.20, above the analyst consensus of $5.13, and adjusted its revenue outlook between $10.14 to $10.17 billion, in line with the consensus estimate of $10.151 billion.

These updates follow the sale of a 55% stake in its Worldpay Merchant Solutions business, finalized on January 31, 2024, with FIS retaining a 45% non-controlling interest in Worldpay. Recorded debt outstanding at $10.9 billion and $641 million generated in net cash from operating activities, alongside an adjusted free cash flow of $530 million for the quarter.

Analysts Boost Price Targets Following Q3 Earnings Beat and Raised Guidance

TD Cowen analyst Bryan Bergin maintained a Hold, while raising the price target from $78 to $86.
Mizuho analyst Dan Dolev maintained an Outperform rating and lifted the price target from $91 to $104.
UBS analyst Timothy Chiodo kept a Neutral rating and increased the price target from $80 to $94.
RBC Capital analyst Daniel Perlin reiterated an Outperform rating and raised the price target from $95 to $104.
Keefe, Bruyette & Woods analyst Vasundhara Govil maintained an Outperform rating and adjusted the price target from $97 to $102.
JP Morgan analyst Tien-Tsin Huang held an Overweight rating and boosted the price target from $89 to $99.
Morgan Stanley analyst James Faucette kept an Equal-Weight rating and lifted the price target from $80 to $87.
Susquehanna analyst James Friedman continued a Positive rating and increased the price target from $88 to $103.
Baird analyst David Koning retained a Neutral rating and raised the price target from $92 to $94.

Which Analyst has the best track record to show on FIS?

Analyst James Faucette (MORGAN STANLEY) currently has the highest performing score on FIS with 7/13 (53.85%) price target fulfillment ratio. His price targets carry an average of $3.68 (4.89%) potential upside. Fidelity National Information Services stock price reaches these price targets on average within 233 days.

Fox Corporation Surpasses Q1 Expectations with 11% Revenue Growth and EPS Beat

Fox Corporation reported its financial results for the quarter achieving a total revenues of $3.56 billion, exceeding the consensus estimate of $3.38 billion and representing an 11% year-over-year increase.

This growth was driven by a 6% rise in affiliate fee revenues, with the Television segment up 10% and Cable Network Programming up 3%. Advertising revenues rose by 11%, bolstered by political ad spending at FOX Television Stations, continued growth at Tubi, increased pricing in the direct response market for FOX News Media, and viewership spikes for FOX Sports due to major events like the UEFA European Championship and CONMEBOL Copa América.

Other revenues increased 47%, primarily due to higher sports sublicensing revenues at national sports networks, even without the prior year’s FIFA Women’s World Cup broadcast.

Fox Corporation reported quarterly net income of $832 million, more than doubling from $415 million in the prior year. Net income attributable to Fox Corporation stockholders was $827 million, or $1.78 per share, compared to $407 million or $0.82 per share last year.

Adjusted net income of $672 million resulted in earnings of $1.45 per share, outperforming analyst projections of $1.13 per share by $0.32. Adjusted EBITDA reached $1.05 billion, marking a 21% increase, primarily driven by revenue growth.

Analysts Raise Price Targets Amid Strong Q1 Results and EPS Beat

Guggenheim analyst Michael Morris maintained a Buy rating and raised the price target from $45 to $50.
TD Cowen analyst Doug Creutz reiterated a Hold rating while increasing the price target from $36 to $42.
UBS analyst John Hodulik kept a Buy rating and lifted the price target from $44 to $50.
Goldman Sachs analyst Michael Ng maintained a Buy stance and raised the price target from $46 to $51.
Macquarie analyst Tim Nollen continued with a Neutral rating and the price target at $43.
JP Morgan analyst David Karnovsky reaffirmed a Neutral rating and adjusted the price target from $41 to $42.
Wells Fargo analyst Steven Cahall kept an Overweight rating with increased price target from $46 to $49.
Deutsche Bank analyst Bryan Kraft maintained a Buy rating and raised the price target from $42 to $47.
Morgan Stanley analyst Benjamin Swinburne held an Equal-Weight rating and lifted the price target from $40 to $42.

Which Analyst has the best track record to show on FOXA?

Analyst Michael Morris (GUGGENHEIM) currently has the highest performing score on FOXA with 5/6 (83.33%) price target fulfillment ratio. His price targets carry an average of $2.68 (6.33%) potential upside. Fox Corporation stock price reaches these price targets on average within 287 days.

Marqeta Reports Q3 Growth, but Lower-Than-Expected Q4 Guidance

Marqeta reported its third-quarter results for 2024, showing a 30% increase in Total Processing Volume (TPV), which reached $74 billion compared to $56.7 billion in Q3 2023. Net Revenue for the quarter amounted to $128 million versus the consensus estimate of $128.1 million. This is up 18% year-over-year, while Gross Profit grew 24% to $90 million.

Despite these positive gains, Marqeta recorded a GAAP Net Loss of $29 million, although this represented an improvement from a loss of $55 million in the same quarter last year. Adjusted EBITDA surged to $9 million, a 537% increase from Q3 2023.

Marqeta’s gross margin improved to 70%, up from 67% last year. However, Marqeta’s fourth-quarter guidance came in below expectations, forecasting revenue growth of 10% to 12%, a decline from the 17% analysts had projected.

Analyst Downgrades and Price Target Cuts Following Weak Q4 Guidance

Mizuho analyst Anthony Crowdell maintained an Outperform rating, while lowering the price target from $7 to $5.
Keefe, Bruyette & Woods analyst Sanjay Sakhrani kept a Market Perform rating, but reduced the price target from $6 to $5.
Monness, Crespi, Hardt analyst Gus Gala downgraded from Buy to Neutral.
Morgan Stanley analyst James Faucette maintained an Equal-Weight rating, with a lowered price target of $5, down from $7.
Wells Fargo analyst Andrew Bauch downgraded from Overweight to Equal-Weight and the price target from $7 to $5.
Susquehanna analyst James Friedman held a Positive rating, though lowered the price target from $9 to $7.
William Blair analyst Robert Napoli downgraded from Outperform to Market Perform.
Keybanc analyst Alex Markgraff downgraded from Overweight to Sector Weight.
Deutsche Bank analyst Bryan Keane downgraded from Buy to Hold and the price target from $9 to $4.

Which Analyst has the best track record to show on MQ?

Analyst Andrew Bauch (WELLS FARGO) currently has the highest performing score on MQ with 3/6 (50%) price target fulfillment ratio. His price targets carry an average of $1.59 (29.39%) potential upside. Marqeta stock price reaches these price targets on average within 12 days.