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What's in the Offing for Jack Henry's (JKHY) Q3 Earnings?

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Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report third-quarter fiscal 2022 results on May 3.

For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $478.25 million, indicating growth of 10.2% from the prior-year quarter’s reported figure.

Further, the consensus mark for earnings per share is pegged at $1.06, which suggests growth of 11.6% 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 9.34%.

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

Factors at Play

Jack Henry’s results for the fiscal third quarter are likely to reflect portfolio strength. The company’s robust core solutions are expected to have driven the top line in the quarter to be reported on the back of the growing adoption rate.

Notably, the company’s solutions have been attracting core customer contracts.

The increasing adoption of Jack Henry Banking solutions is expected to have contributed well to the company’s Core segment’s performance in the fiscal third quarter.

A solid momentum across the Payments, Complementary and Corporate segments is expected to get reflected in the to-be-reported quarterly results.

Robust debit and credit processing solutions of the company are likely to have bolstered its debit and credit clientele in the fiscal third quarter.

Growth across technology solutions and expanding customer relationships are expected to have contributed significantly to the company’s performance in the quarter under review.

In the underlined quarter, the company’s technology platform was selected by Bank of Burlington, RockPoint Bank and Moultrie Bank & Trust to expand the accessibility of their financial services in local communities.

Further, Independent Financial extended its relationship with Jack Henry & Associates to leverage the latter’s digital lending platform, LoanVantage, for automating commercial loans for small and medium-sized businesses.

Jack Henry’s outsourcing and cloud services are expected to have acted as key catalysts in the quarter under review. The growing momentum of the Banno Digital suite, the new card processing solution and treasury management is likely to have driven the company’s performance in the quarter under review.

However, the impacts of rising headcounts and personnel costs are likely to get reflected in the fiscal third-quarter results. Increasing expenses related to the card processing platform are also expected to have impacted the company’s performance in the quarter review.

Headwinds related to the ongoing coronavirus pandemic are expected to have been other overhangs.

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 #2, currently.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year period’s reported figure.

HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year period’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.