3Q Revenues For FIS Disappoint Goldman Sachs

Fidelity National Information Services FIS reported 3Q EPS ahead of estimates by $0.01 and is witnessing increased demand, according to Goldman Sachs. In its research report, Goldman Sachs writes "Management described CY10 demand as steady but slowly improving, and while we view customers' increased confidence and willingness to make buying decisions as positives, our CY11 view is cautious (4.0% CY11E revenue growth) given ongoing headwinds in the banking industry. Our concern is that Consensus revenue growth for CY11 is too high (+4.7% yoy, as of 10/26, and likely to move up post-print), particularly given recent top-line weakness and demand concerns, so we will monitor expectations." Goldman Sachs maintains its Neutral rating and $29 price target. Fidelity National Information Services closed yesterday at $28.22.