Fidelity National Information Services Earnings: First Look at FIS’s Future

Fidelity National Information Services’ third-quarter results provided a look at how the company will perform following the sale of Worldpay operations, as it is now reporting Worldpay as discontinued operations. Overall, the company should see lower growth but also become a more stable and predictable company that focuses on capital return. While we think the course management chose for Worldpay was not optimal, this is not an unattractive proposition. We will maintain our $76 fair value estimate for the narrow-moat company and see shares as undervalued.