Fidelity National Information Services Earnings: New Approach Bearing Fruit

Fidelity National Information Services underwent a major change at the beginning of the year, as it sold a majority stake in Worldpay, and refocused on its bank technology and capital-market operations. Second-quarter results suggest this shift continues to progress relatively smoothly. We think the company is now more stable, but has lower long-term growth prospects. We will maintain our $83 per share fair value estimate for the narrow-moat company and see shares as modestly undervalued at the moment.