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Jack Henry (JKHY) Q1 Earnings Beat, Revenues Increase Y/Y
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Jack Henry & Associates, Inc. (JKHY - Free Report) reported first-quarter fiscal 2022 earnings of $1.38 per share, which surpassed the Zacks Consensus Estimate by 2.9%. Further, the bottom line increased 16% year over year.
Revenues improved 8% year over year to $488.1 million. However, the top line missed the Zacks Consensus Estimate of $490 million.
The company’s non-GAAP revenues were $484.2 million, up 9% from the year-ago quarter.
Top-line growth was driven by strength across the Core, Payments, Complementary and Corporate segments in the reported quarter. Additionally, accelerating processing, and services and support revenues contributed to the results.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Services & Support: The company generated revenues of $297.5 million from the category (61% of revenues). Notably, the figure rose 6% from the year-ago quarter, owing to 12% growth in data processing and hosting fees in the reported quarter. Also, a hike in software usage fees was a tailwind.
Processing: The category yielded revenues of $190.6 million (39% of revenues) in the reported quarter, up 12% year over year. This can be attributed to 9% growth in card-processing transaction volumes.
Segments in Detail
Core: The company generated revenues of $165.3 million from the segment (34% of total revenues), increasing 8% year over year.
Payments: The segment yielded revenues of $169.6 million (35% of total revenues), increasing 8% from the year-ago quarter.
Complementary: The segment generated $141.5 million in revenues (29% of total revenues), increasing 9% year over year.
Corporate & Other: The company generated revenues of $11.7 million from the segment (2% of total revenues), up 1% from the prior-year quarter.
Operating Details
In first-quarter fiscal 2022, total operating expenses were $354.5 million, reflecting a year-over-year increase of 6%. This can primarily be attributed to higher personnel costs, rising expenses related to the company’s card-processing platform and growing travel costs.
As a percentage of revenues, the figure contracted 130 basis points (bps) year over year to 72.6%.
Notably, the operating margin was 27% in the reported quarter, which expanded 100 bps on a year-over-year basis.
Balance Sheet
As of Sep 30, 2021, cash and cash equivalents totaled $44.3 million, which decreased from $51 million as of Jun 30, 2021.
Trade receivables were $253.2 million in the reported quarter, down from $306.6 million in the previous quarter.
The current and long-term debt stood at $65.2 million at the end of first-quarter fiscal 2022 compared with $100.2 million at the end of fourth-quarter fiscal 2021.
Guidance
For fiscal 2022, the company raised its guidance for GAAP revenues from $1.902-$1.911 billion to $1.910-$1.919 billion, indicating year-over-year growth of 8.6-9.1%. Notably, the Zacks Consensus Estimate for revenues is pegged at $1.90 billion.
The company’s expectation for non-GAAP revenues has been unchanged at $1.866-$1.875 billion, suggesting growth of 7.5-8% from that reported in 2021.
It has also raised the guidance for earnings from $4.53-$4.60 to $4.64-$4.73 per share, indicating year-over-year growth of 12.8-14.8%. The Zacks Consensus Estimate for the same is pegged at $4.59 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #3 (Hold).
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Jack Henry (JKHY) Q1 Earnings Beat, Revenues Increase Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) reported first-quarter fiscal 2022 earnings of $1.38 per share, which surpassed the Zacks Consensus Estimate by 2.9%. Further, the bottom line increased 16% year over year.
Revenues improved 8% year over year to $488.1 million. However, the top line missed the Zacks Consensus Estimate of $490 million.
The company’s non-GAAP revenues were $484.2 million, up 9% from the year-ago quarter.
Top-line growth was driven by strength across the Core, Payments, Complementary and Corporate segments in the reported quarter. Additionally, accelerating processing, and services and support revenues contributed to the results.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. Quote
Top Line in Detail
Services & Support: The company generated revenues of $297.5 million from the category (61% of revenues). Notably, the figure rose 6% from the year-ago quarter, owing to 12% growth in data processing and hosting fees in the reported quarter. Also, a hike in software usage fees was a tailwind.
Processing: The category yielded revenues of $190.6 million (39% of revenues) in the reported quarter, up 12% year over year. This can be attributed to 9% growth in card-processing transaction volumes.
Segments in Detail
Core: The company generated revenues of $165.3 million from the segment (34% of total revenues), increasing 8% year over year.
Payments: The segment yielded revenues of $169.6 million (35% of total revenues), increasing 8% from the year-ago quarter.
Complementary: The segment generated $141.5 million in revenues (29% of total revenues), increasing 9% year over year.
Corporate & Other: The company generated revenues of $11.7 million from the segment (2% of total revenues), up 1% from the prior-year quarter.
Operating Details
In first-quarter fiscal 2022, total operating expenses were $354.5 million, reflecting a year-over-year increase of 6%. This can primarily be attributed to higher personnel costs, rising expenses related to the company’s card-processing platform and growing travel costs.
As a percentage of revenues, the figure contracted 130 basis points (bps) year over year to 72.6%.
Notably, the operating margin was 27% in the reported quarter, which expanded 100 bps on a year-over-year basis.
Balance Sheet
As of Sep 30, 2021, cash and cash equivalents totaled $44.3 million, which decreased from $51 million as of Jun 30, 2021.
Trade receivables were $253.2 million in the reported quarter, down from $306.6 million in the previous quarter.
The current and long-term debt stood at $65.2 million at the end of first-quarter fiscal 2022 compared with $100.2 million at the end of fourth-quarter fiscal 2021.
Guidance
For fiscal 2022, the company raised its guidance for GAAP revenues from $1.902-$1.911 billion to $1.910-$1.919 billion, indicating year-over-year growth of 8.6-9.1%. Notably, the Zacks Consensus Estimate for revenues is pegged at $1.90 billion.
The company’s expectation for non-GAAP revenues has been unchanged at $1.866-$1.875 billion, suggesting growth of 7.5-8% from that reported in 2021.
It has also raised the guidance for earnings from $4.53-$4.60 to $4.64-$4.73 per share, indicating year-over-year growth of 12.8-14.8%. The Zacks Consensus Estimate for the same is pegged at $4.59 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , ASE Technology (ASX - Free Report) and Mimecast Ltd. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Advanced Micro Devices, ASE and Mimecast are currently projected at 46.2%, 35% and 26.9%, respectively.