Fidelity National Information Services Inc.’sFIS first quarter 2016 adjusted earnings per share from continuing operations came in at 79 cents, beating the Zacks Consensus Estimate of 74 cents and increasing 22% from the year-ago quarter. Fidelity National Information Services Inc. (FIS) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany RevenuesRevenues (both processing and services) of $2,181 million surged 40.3% year over year. Organic revenue growth was 4.2% in the quarter.Segment wise, Integrated Financial Solutions revenues grew 5.8% year over year to $1,121 million while revenues from Global Financial Solutions inched up 0.3% year over year to $990 million.MarginsOn a non-GAAP basis, operating income grew 10.7% year over year to $498 million while operating margin was 22%, up 170 basis points (bps). Adjusted EBITDA grew 8.1% year over year to $637 million while EBITDA margin also surged 170 bps to 28.2%.Balance Sheet & Cash FlowFidelity’s balance sheet remained highly leveraged at the end of the reported quarter. As of Mar 31, 2016, cash and cash equivalents were $702 million and debt outstanding was over $11.3 billion.In the quarter, net cash provided by operations was $385 million and adjusted cash flow from operations was $483 million. The company’s capital expenditures were $145 million and free cash flow was $338 million.Fidelity National paid dividends worth $85 million in the quarter.GuidanceThe company reaffirmed its guidance for 2016 revenues and earnings.Fidelity projects organic revenue growth in a range of 3% to 4%. Adjusted earnings per share are expected to be in a range of $3.70 to $3.80, representing an increase of 15% to 18% over 2015 levels.Our TakeFidelity’s commanding position in the financial services market, increasing international exposure, recurring revenue model, diversified product portfolio, cost synergies from acquisitions and a loyal customer base are significant positives.Moreover, we believe that Fidelity is well positioned to benefit from increasing investment in mobile banking and innovative products such as PayNet. Mobile banking is developing into an essential extension of online banking as smartphone and tablet usage continue to accelerate globally.Also, accretive acquisitions have played an important role. In Nov 2015, the company acquired prominent financial software and technology services provider, SunGard for approximately $9.1 billion. The new company is expected to generate pro forma revenues of $9.3 billion in a year with employee strength of 55K.However, in the past, the company witnessed weakness in its Professional Services business and sluggish demand from its large and global financial institution clients. In addition, increasing consolidation in the banking sector, challenging environment for the Payments Solutions business and uncertain regulatory environment are the primary headwinds, in our view. Also, intensifying competition from the likes of Fiserv FISV, Global Payments Inc. GPN and Alliance Data Systems Corp. ADS remains a concern.Currently, Fidelity has a Zacks Rank #3 (Hold).Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FIDELITY NAT IN (FIS): Free Stock Analysis Report FISERV INC (FISV): Free Stock Analysis Report ALLIANCE DATA (ADS): Free Stock Analysis Report GLOBAL PAYMENTS (GPN): Free Stock Analysis Report To read this article on Zacks.com click here.