We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jack Henry (JKHY) Down 1.4% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Jack Henry (JKHY - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Jack Henry due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Jack Henry's Q4 Earnings Beat
Jack Henry & Associates reported fourth-quarter fiscal 2021 earnings of $1.04 per share, which surpassed the Zacks Consensus Estimate by 11.8%. Further, the bottom line increased 9.5% sequentially and 30% year over year.
Revenues improved 10% year over year and 3.8% sequentially to $450.3 million. Further, the top line beat the Zacks Consensus Estimate of $441.4 million.
The company’s non-GAAP revenues were $442.05 million, up 10% from the year-ago quarter and 2.9% from the prior 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.
Top Line in Detail
Services & Support: The company generated revenues of $261.7 million from the category (58% of revenues). Notably, the figure rose 6% from the year-ago quarter, owing to 9.1% 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 $188.6 million (42% of revenues) in the reported quarter, up 15% year over year. This can be attributed to 22.3% growth in card processing transaction volumes. Also, increasing digital and remittance revenues contributed well.
Segments in Detail
Core: The company generated revenues of $140.8 million from the segment (31.3% of total revenues), increasing 4% year over year.
Payments: The segment yielded revenues of $169.6 million (37.6% of total revenues), increasing 16% from the year-ago quarter.
Complementary: The segment generated $128.7 million in revenues (28.6% of total revenues), increasing 7% year over year.
Corporate & Other: The company generated revenues of $11.2 million from the segment (2.5% of total revenues), up 17% from the prior-year quarter.
Operating Details
In fourth-quarter fiscal 2021, total operating expenses were $353.9 million, reflecting a year-over-year increase of 6%. This can primarily be attributed to higher personnel costs and rising expenses related to the company’s card processing platform.
As a percentage of revenues, the figure contracted 270 basis points (bps) year over year to 78.6%.
Notably, the operating margin was 21% in the reported quarter, which expanded 200 bps on a year-over-year basis.
Balance Sheet
As of Jun 30, 2021, cash and cash equivalents totaled $51 million, which decreased from $70.1 million as of Mar 31, 2021.
Trade receivables were $306.6 million in the reported quarter, down from $207.7 million in the previous quarter.
Further, the current and long-term debt stood at $100.2 million at the end of the fiscal fourth quarter compared with $200.2 million at the end of third-quarter fiscal 2021.
Guidance
For fiscal 2022, the company expects GAAP revenues between $1.902 billion and $1.911 billion, indicating year-over-year growth of 8.2-8.7%.
The company’s expectation regarding non-GAAP revenues is pegged at $1.866-$1.875 billion, suggesting growth of 7.5-8% from that reported in 2021.
It expects earnings of $4.53-$4.60, indicating year-over-year growth of 10-11.8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Jack Henry has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Jack Henry (JKHY) Down 1.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Jack Henry (JKHY - Free Report) . Shares have lost about 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Jack Henry due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Jack Henry's Q4 Earnings Beat
Jack Henry & Associates reported fourth-quarter fiscal 2021 earnings of $1.04 per share, which surpassed the Zacks Consensus Estimate by 11.8%. Further, the bottom line increased 9.5% sequentially and 30% year over year.
Revenues improved 10% year over year and 3.8% sequentially to $450.3 million. Further, the top line beat the Zacks Consensus Estimate of $441.4 million.
The company’s non-GAAP revenues were $442.05 million, up 10% from the year-ago quarter and 2.9% from the prior 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.
Top Line in Detail
Services & Support: The company generated revenues of $261.7 million from the category (58% of revenues). Notably, the figure rose 6% from the year-ago quarter, owing to 9.1% 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 $188.6 million (42% of revenues) in the reported quarter, up 15% year over year. This can be attributed to 22.3% growth in card processing transaction volumes. Also, increasing digital and remittance revenues contributed well.
Segments in Detail
Core: The company generated revenues of $140.8 million from the segment (31.3% of total revenues), increasing 4% year over year.
Payments: The segment yielded revenues of $169.6 million (37.6% of total revenues), increasing 16% from the year-ago quarter.
Complementary: The segment generated $128.7 million in revenues (28.6% of total revenues), increasing 7% year over year.
Corporate & Other: The company generated revenues of $11.2 million from the segment (2.5% of total revenues), up 17% from the prior-year quarter.
Operating Details
In fourth-quarter fiscal 2021, total operating expenses were $353.9 million, reflecting a year-over-year increase of 6%. This can primarily be attributed to higher personnel costs and rising expenses related to the company’s card processing platform.
As a percentage of revenues, the figure contracted 270 basis points (bps) year over year to 78.6%.
Notably, the operating margin was 21% in the reported quarter, which expanded 200 bps on a year-over-year basis.
Balance Sheet
As of Jun 30, 2021, cash and cash equivalents totaled $51 million, which decreased from $70.1 million as of Mar 31, 2021.
Trade receivables were $306.6 million in the reported quarter, down from $207.7 million in the previous quarter.
Further, the current and long-term debt stood at $100.2 million at the end of the fiscal fourth quarter compared with $200.2 million at the end of third-quarter fiscal 2021.
Guidance
For fiscal 2022, the company expects GAAP revenues between $1.902 billion and $1.911 billion, indicating year-over-year growth of 8.2-8.7%.
The company’s expectation regarding non-GAAP revenues is pegged at $1.866-$1.875 billion, suggesting growth of 7.5-8% from that reported in 2021.
It expects earnings of $4.53-$4.60, indicating year-over-year growth of 10-11.8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Jack Henry has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.