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Fidelity National Information Services Inc. (NYSE:FIS) is scheduled to report its first quarter 2011 results before the opening bell on May 3. In the run up to the earnings report, there have not been any variations in analyst estimates.

Fourth Quarter 2010 Highlights

Fidelity reported strong fourth quarter 2010 results, with revenue increasing 7.6% year over year to $1.4 billion (6.1% organically), primarily driven by strong results from Financial Solutions and International Solutions.

During the quarter, earnings, on a non-GAAP basis, from continuing operations jumped 42.2% year over year to 64 cents per share from 45 cents reported in the prior-year quarter, beating the Zacks Consensus Estimate of 60 cents.

In fiscal 2010, revenue increased 4.2% year over year (3.2% organically) to $5.20 billion. Earnings on a non-GAAP basis increased 22.4% year over year to $2.02 per share, surpassing the Zacks Consensus Estimate of $1.98.

For further details, please refer to Fidelity Beats on Strong Revenue.

First quarter 2011 and FY 2011 Estimates

For the first quarter ending March 31, 2011, Fidelity expects earnings per share (EPS) in the range of 44-46 cents (up 7.0-12.0% year over year). The guidance was in line with the Zacks Consensus Estimate of 45 cents. The current quarter EPS expectation takes into account increased integration charges related to the company’s Metavante and Capco acquisitions.

Revenue is expected to be in the range of $1.36-1.38 billion for the quarter. Currently, the Zacks Consensus Estimate for revenue is pegged at $1.37 billion for the first quarter, which is in line with management’s guided range. For the quarter, Fidelity expects EBITDA in the range of $370.0-380.0 million.

For full-year 2011, Fidelity continues to expect adjusted earnings per share from continuing operations of $2.24-2.34, up 11.0-16.0% from $2.02 in fiscal 2010. Currently, the Zacks Consensus Estimate is pegged at $2.32, roughly in line with the high end of the guided range.

Total revenue is expected to grow 9.0-11.0% (4.0-6.0% organically) for fiscal 2011 and EBITDA is projected to increase 7.0-9.0%. Fidelity expects $48.0 million of cost savings in fiscal 2011.

Estimate Revision Trend

Of the 16 analysts providing estimates for the upcoming quarter, none made any changes in their estimates in the last 30 days.

For fiscal 2011, only one analyst made an upward revision in the last 30 days (out of the 16 analysts covering the stock) and as a result, the EPS estimate for fiscal 2011 increased by a penny from $2.31 to $2.32.

Conclusion

We maintain our Neutral rating for Fidelity on a long-term basis (for the next six to 12 months), primarily due to an increasing debt and intense competition from such companies Fiserv Inc. (NASDAQ:FISV), IBM and Accenture Plc (NYSE:ACN).

In our view, the increasing consolidation in the banking sector, a challenging environment for the Payments Solutions business, and an uncertain regulatory environment are the primary business headwinds. However, going forward, continued market share gains, global expansion, a strong product portfolio and cost synergies will drive earnings and revenue.

In general, the first quarter is a seasonally weaker period for Fidelity; hence we remain cautious on a near-term basis. However, we expect 2011 results to be positively impacted by the company’s strong organic growth and international expansion.

Currently, Fidelity has a Zacks #4 Rank, which implies a short-term Sell rating (for the next one to three months).

Source: Fidelity National Information Services Earnings Preview