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Jack Henry (JKHY) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
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Jack Henry & Associates, Inc. (JKHY - Free Report) reported fourth-quarter fiscal 2023 earnings of $1.34 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line increased 21.8% from the year-ago fiscal quarter’s reported figure.
Revenues improved 11% from the year-ago fiscal quarter’s reading to $534.6 million. The figure beat the Zacks Consensus Estimate of $511.3 million.
JKHY’s non-GAAP revenues were $517.4 million, up 8% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support revenues. Strong growth in processing revenues also contributed well.
Additionally, strong momentum across the Core, Payments, Complementary and Corporate segments drove the results further.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Services & Support: Jack Henry generated revenues of $311.9 million from the category (58% of revenues). The figure grew 12% from the year-ago fiscal quarter’s level, owing to a 10% rise in data processing and hosting fees. Also, accelerating one-time revenues, including consulting fees and work orders, implementation fee revenues, and hardware revenue were positives.
Moreover, rising deconversion fees was a plus.
Processing: The category yielded $222.7 million in revenues (42% of revenues) in the reported quarter, up 10% from the year-ago fiscal quarter’s actuals. This can be attributed to a 7% increase in Jack Henry's card-processing revenues and a 13% rise in payment-processing revenues. The Payrailz buyout also contributed well.
Segments in Detail
Core: Revenues totaled $168.7 million (31.6% of total revenues), which rose 11% from the year-ago fiscal quarter’s figure. The figure surpassed the Zacks Consensus Estimate of $160 million.
Payments: Revenues summed up to $197.5 million (36.9% of total revenues), increasing 9% from the year-ago fiscal quarter’s level. The figure beat the consensus mark of $186 million.
Complementary: Revenues came in at $151.1 million (28.3% of total revenues), up 11% from the year-earlier fiscal quarter’s number. The figure came ahead of the consensus mark of $149 million.
Corporate & Other: Revenues grossed $17.3 million (3.2% of the total revenues) and rose 18% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $14.6 million.
Operating Details
In fourth-quarter fiscal 2023, total operating expenses were $410.4 million, reflecting an 8% increase from the prior-year fiscal quarter. This can primarily be attributed to rising direct costs and personnel costs, including benefits expenses.
As a percentage of revenues, the figure contracted 170 basis points (bps) from the year-ago fiscal quarter’s number to 76.8%.
The operating margin was 23%, up 200 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Jun 30, 2023, cash and cash equivalents totaled $12.2 million compared with $26.6 million as of Mar 31, 2023.
Trade receivables were $361.2 million in the reported quarter, down from $238.4 million in the previous fiscal quarter.
The current and long-term debt stood at $275 million at the end of fourth-quarter fiscal 2023 compared with $375 million at the end of the third quarter of fiscal 2023.
Guidance
For fiscal 2024, Jack Henry expects GAAP revenues between $2.208 billion and $2.229 billion. The Zacks Consensus Estimate for revenues is pegged at $2.19 billion.
It expects non-GAAP revenues to be $2.190-$2.210 billion.
Management raised the guidance for earnings from $4.85-$4.87 to $4.92-$4.99 per share. The Zacks Consensus Estimate for earnings is pegged at $5.34 per share.
Zacks Rank & Other Stocks to Consider
Jack Henry currently carries a Zacks Rank #2 (Buy).
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pegged at 41 cents per share, up from a loss of 3 cents per share reported in the year-ago quarter’s figure. BILL has lost 6.4% in the year-to-date period.
NetEase is scheduled to report its second-quarter 2023 results on Aug 24. The Zacks Consensus Estimate for NTES’ earnings stands at $1.33 per share, suggesting an increase of 9.02% from the prior-year quarter’s reported figure. NTES has gained 41.4% in the year-to-date period.
Broadcom is scheduled to report its third-quarter fiscal 2023 results on Aug 31. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.42 per share, suggesting an increase of 7.09% from the prior-year quarter’s reported figure. AVGO has gained 50.7% in the year-to-date period.
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Jack Henry (JKHY) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) reported fourth-quarter fiscal 2023 earnings of $1.34 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line increased 21.8% from the year-ago fiscal quarter’s reported figure.
Revenues improved 11% from the year-ago fiscal quarter’s reading to $534.6 million. The figure beat the Zacks Consensus Estimate of $511.3 million.
JKHY’s non-GAAP revenues were $517.4 million, up 8% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support revenues. Strong growth in processing revenues also contributed well.
Additionally, strong momentum across the Core, Payments, Complementary and Corporate segments drove the results further.
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: Jack Henry generated revenues of $311.9 million from the category (58% of revenues). The figure grew 12% from the year-ago fiscal quarter’s level, owing to a 10% rise in data processing and hosting fees. Also, accelerating one-time revenues, including consulting fees and work orders, implementation fee revenues, and hardware revenue were positives.
Moreover, rising deconversion fees was a plus.
Processing: The category yielded $222.7 million in revenues (42% of revenues) in the reported quarter, up 10% from the year-ago fiscal quarter’s actuals. This can be attributed to a 7% increase in Jack Henry's card-processing revenues and a 13% rise in payment-processing revenues. The Payrailz buyout also contributed well.
Segments in Detail
Core: Revenues totaled $168.7 million (31.6% of total revenues), which rose 11% from the year-ago fiscal quarter’s figure. The figure surpassed the Zacks Consensus Estimate of $160 million.
Payments: Revenues summed up to $197.5 million (36.9% of total revenues), increasing 9% from the year-ago fiscal quarter’s level. The figure beat the consensus mark of $186 million.
Complementary: Revenues came in at $151.1 million (28.3% of total revenues), up 11% from the year-earlier fiscal quarter’s number. The figure came ahead of the consensus mark of $149 million.
Corporate & Other: Revenues grossed $17.3 million (3.2% of the total revenues) and rose 18% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $14.6 million.
Operating Details
In fourth-quarter fiscal 2023, total operating expenses were $410.4 million, reflecting an 8% increase from the prior-year fiscal quarter. This can primarily be attributed to rising direct costs and personnel costs, including benefits expenses.
As a percentage of revenues, the figure contracted 170 basis points (bps) from the year-ago fiscal quarter’s number to 76.8%.
The operating margin was 23%, up 200 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Jun 30, 2023, cash and cash equivalents totaled $12.2 million compared with $26.6 million as of Mar 31, 2023.
Trade receivables were $361.2 million in the reported quarter, down from $238.4 million in the previous fiscal quarter.
The current and long-term debt stood at $275 million at the end of fourth-quarter fiscal 2023 compared with $375 million at the end of the third quarter of fiscal 2023.
Guidance
For fiscal 2024, Jack Henry expects GAAP revenues between $2.208 billion and $2.229 billion. The Zacks Consensus Estimate for revenues is pegged at $2.19 billion.
It expects non-GAAP revenues to be $2.190-$2.210 billion.
Management raised the guidance for earnings from $4.85-$4.87 to $4.92-$4.99 per share. The Zacks Consensus Estimate for earnings is pegged at $5.34 per share.
Zacks Rank & Other Stocks to Consider
Jack Henry currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader technology sector can consider some other top-ranked stocks like BILL Holdings (BILL - Free Report) and Broadcom (AVGO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present, and NetEase (NTES - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pegged at 41 cents per share, up from a loss of 3 cents per share reported in the year-ago quarter’s figure. BILL has lost 6.4% in the year-to-date period.
NetEase is scheduled to report its second-quarter 2023 results on Aug 24. The Zacks Consensus Estimate for NTES’ earnings stands at $1.33 per share, suggesting an increase of 9.02% from the prior-year quarter’s reported figure. NTES has gained 41.4% in the year-to-date period.
Broadcom is scheduled to report its third-quarter fiscal 2023 results on Aug 31. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.42 per share, suggesting an increase of 7.09% from the prior-year quarter’s reported figure. AVGO has gained 50.7% in the year-to-date period.