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) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Jack Henry & Associates (JKHY - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 8.
For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $529.04 million, suggesting growth of 8.4% from the year-ago fiscal quarter’s reported figure.
The consensus mark for earnings stands at $1.4 per share, indicating growth of 1.45% from the year-ago fiscal period’s level. The consensus mark has moved 2.8% south in the past 30 days.
Jack Henry beat on earnings in all the trailing four quarters, the average being 8.6%.
Jack Henry & Associates, Inc. Price and EPS Surprise
Jack Henry’s performance in the fiscal first quarter is likely to have been driven by the growing deals for shifting on-premise core customers to the private cloud environment.
Solid growth in the Core segment revenues might have continued benefiting Jack Henry’s top line in the quarter under review.
The Zacks Consensus Estimate for Core revenues is pegged at $179 million, increasing 16.99% from the year-ago fiscal quarter’s reported figure.
Increasing demand for JKHY’s Banno digital platform and cloud processing solution is expected to have supported its quarterly performance.
Growth in cloud processing revenues and increased implementation fee revenues are expected to have contributed well to Services and support revenues in the underlined quarter.
The Zacks Consensus Estimate for Services and support revenues is pegged at $322 million, increasing 8.42% from the year-ago fiscal quarter’s reported figure.
Growing card-processing fee revenues and digital revenues are likely to have propelled Processing revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for Processing revenues is pegged at $205 million, increasing 7.33% from the year-ago fiscal quarter’s reported figure.
During the fiscal first quarter, Jack Henry acquired a digital payments company named Payrailz to expand its payment services for helping financial institutions seamlessly cater to the needs of consumers and commercial account holders. The acquisition impact is expected to be reflected in the upcoming quarterly results.
Additionally, Jack Henry got selected by LINKBANCORP to provide advanced banking services to the latter’s commercial and retail customers. This is likely to have been a tailwind in the quarter under discussion.
However, increasing operating expenses due to higher personnel and travel costs, and rising expenses related to Jack Henry’s card-processing platform might have hurt its profit margin in the fiscal first quarter.
Declining deconversion fees are expected to have affected Jack Henry’s performance in the quarter under review.
What Our Model Says
Our proven model does not 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, which is not the case here, as elaborated below. 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 -1.61% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Image: Bigstock
Jack Henry (JKHY) to Report Q1 Earnings: What's in the Cards?
Jack Henry & Associates (JKHY - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 8.
For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $529.04 million, suggesting growth of 8.4% from the year-ago fiscal quarter’s reported figure.
The consensus mark for earnings stands at $1.4 per share, indicating growth of 1.45% from the year-ago fiscal period’s level. The consensus mark has moved 2.8% south in the past 30 days.
Jack Henry beat on earnings in all the trailing four quarters, the average being 8.6%.
Jack Henry & Associates, Inc. Price and EPS Surprise
Jack Henry & Associates, Inc. price-eps-surprise | Jack Henry & Associates, Inc. Quote
Factors to Consider
Jack Henry’s performance in the fiscal first quarter is likely to have been driven by the growing deals for shifting on-premise core customers to the private cloud environment.
Solid growth in the Core segment revenues might have continued benefiting Jack Henry’s top line in the quarter under review.
The Zacks Consensus Estimate for Core revenues is pegged at $179 million, increasing 16.99% from the year-ago fiscal quarter’s reported figure.
Increasing demand for JKHY’s Banno digital platform and cloud processing solution is expected to have supported its quarterly performance.
Growth in cloud processing revenues and increased implementation fee revenues are expected to have contributed well to Services and support revenues in the underlined quarter.
The Zacks Consensus Estimate for Services and support revenues is pegged at $322 million, increasing 8.42% from the year-ago fiscal quarter’s reported figure.
Growing card-processing fee revenues and digital revenues are likely to have propelled Processing revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for Processing revenues is pegged at $205 million, increasing 7.33% from the year-ago fiscal quarter’s reported figure.
During the fiscal first quarter, Jack Henry acquired a digital payments company named Payrailz to expand its payment services for helping financial institutions seamlessly cater to the needs of consumers and commercial account holders. The acquisition impact is expected to be reflected in the upcoming quarterly results.
Additionally, Jack Henry got selected by LINKBANCORP to provide advanced banking services to the latter’s commercial and retail customers. This is likely to have been a tailwind in the quarter under discussion.
However, increasing operating expenses due to higher personnel and travel costs, and rising expenses related to Jack Henry’s card-processing platform might have hurt its profit margin in the fiscal first quarter.
Declining deconversion fees are expected to have affected Jack Henry’s performance in the quarter under review.
What Our Model Says
Our proven model does not 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, which is not the case here, as elaborated below. 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 -1.61% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
US Foods (USFD - Free Report) has an Earnings ESP of +4.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.