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Jack Henry (JKHY) to Report Q4 Earnings: What's in Store?

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Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Aug 17.

For the fiscal fourth quarter, the Zacks Consensus Estimate for sales is pegged at $441.4 million, indicating growth of 7.5% from the prior-year quarter’s reported figure.

The consensus mark for earnings per share stands at 93 cents, which suggests a decline of 16.2% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 7.8%.

Jack Henry & Associates, Inc. Price and EPS Surprise

 

Jack Henry & Associates, Inc. Price and EPS Surprise

Jack Henry & Associates, Inc. price-eps-surprise | Jack Henry & Associates, Inc. Quote

Key Factors to Note

The impacts of Jack Henry’s solid momentum across Payments and Complementary segments are expected to get reflected in the fiscal fourth-quarter results.

Strong debit and credit processing solutions of the company are anticipated to have bolstered its debit and credit clientele in the fiscal fourth quarter. This, in turn, is expected to have benefited the payment segment’s performance in the to-be-reported quarter.

The growing adoption of new card-processing solutions is likely to have favored the segment.

Increasing demand for Jack Henry’s Banno Digital Platform is expected to have benefited the company’s performance in the quarter under review.

The new cloud-based digital banking system — JHA Bank Anywhere— is expected to have helped the company in gaining traction across digital banks in the to-be-reported quarter.

Apart from this, the company’s growing efforts toward bolstering its portfolio strength are expected toget reflected in the upcoming results.

Inthe quarter under review, Jack Henry Lending launched a powerful digital solution, Factor Soft Web Portal, which provides lenders near-real-time servicing anytime and anywhere.

Jack Henry’s ProfitStars division announced the expansion of various risk management solutions and services to the Preferred Service Provider program of the Independent Community Bankers of America.

The company acquired a suite of tools and analytics from Stackfolio in a bid to expand the offerings of its Jack Henry Loan Marketplace.

Apart from this, robust technology solutions, including core solutions, are anticipated to have sustained momentum across core customer contracts, which, in turn, is likely to have aided the core segment’s performance in the quarter to be reported.

However, sluggishness in the Core and Corporate segment is likely to get reflected in the company’s fiscal fourth-quarter results.

Rising headcounts and personnel costs are also expected to have weighed on margin expansion in the to-be-reported quarter.

Challenges related to the coronavirus pandemic are anticipated to have hurt the company in the quarter under review.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Jack Henry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jack Henry has an Earnings ESP of 0.00% and a Zacks Rank #3, currently.

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat this quarter:

Agilent Technolgies, Inc. (A - Free Report) currently has an Earnings ESP of +1.16% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco Systems, Inc. (CSCO - Free Report) presently has an Earnings ESP of +1.82% and a Zacks Rank of 3.

salesforce.com, inc. (CRM - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 3.

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