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) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Jack Henry & Associates, Inc. (JKHY - Free Report) reported first-quarter fiscal 2024 earnings of $1.39 per share, which beat the Zacks Consensus Estimate by 7.7%. The bottom line decreased by 4.8% from the year-ago fiscal quarter’s reported figure.
Revenues improved 8% from the year-ago fiscal quarter’s reading to $571.37 million. The figure beat the Zacks Consensus Estimate of $564.37 million.
JKHY’s non-GAAP revenues were $565.3 million, up 7.7% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support revenues. Solid growth in processing revenues also contributed well.
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 $342.2 million from the category (59.9% of revenues). The figure grew 6.9% from the year-ago fiscal quarter’s level, owing to a 10.4% rise in data processing and hosting fees. Accelerating hardware and software usage/subscription revenues were positives.
Processing: The category yielded $229.2 million in revenues (40.1% of revenues), up 9.6% from the year-ago fiscal quarter’s actuals. This can be attributed to a 5.6% increase in Jack Henry's card revenues. Growing payment-processing revenues contributed well.
Segments in Detail
Core: Revenues totaled $186.44 million (32.6% of total revenues), rising 7.6% from the year-ago fiscal quarter’s figure. The figure lagged the Zacks Consensus Estimate of $188 million.
Payments: Revenues summed up to $199.36 million (35% of total revenues), increasing 6.9% from the year-ago fiscal quarter’s level. The figure lagged the consensus mark of $201 million.
Complementary: Revenues came in at $161.37 million (28.2% of total revenues), up 8.7% from the year-earlier fiscal quarter’s number. The figure came ahead of the consensus mark of $156 million.
Corporate & Other: Revenues grossed $24.2 million (4.2% of the total revenues) and surged 15.6% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $18.5 million.
Operating Details
In first-quarter fiscal 2024, total operating expenses were $438.7 million, reflecting a 12.9% increase from the prior-year fiscal quarter. This can primarily be attributed to rising direct costs and personnel costs, including benefits expenses related to the Payrailz acquisition.
As a percentage of revenues, the figure expanded 340 basis points (bps) from the year-ago fiscal quarter’s number to 76.8%.
The operating margin was 23.2%, contracting 340 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents totaled $31.5 million compared with $12.2 million as of Jun 30, 2023.
Trade receivables were $288.7 million in the reported quarter, down from $361.2 million in the previous fiscal quarter.
The current and long-term debt was $245 million at the end of first-quarter fiscal 2024 compared with $275 million at the end of the fourth quarter of fiscal 2023.
Guidance
For fiscal 2024, Jack Henry raised its guidance for GAAP revenues from $2.208-$2.229 billion to $2.211-$2.232 billion. The Zacks Consensus Estimate for revenues is pegged at $2.21 billion.
It also revised guidance for non-GAAP revenues from $2.190-$2.210 billion to $2.193-2.214 billion.
Management raised the guidance for earnings from $4.92-$4.99 to $4.98-$5.04 per share. The Zacks Consensus Estimate for earnings is pegged at $4.96 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Asure Software (ASUR - Free Report) , Adobe (ADBE - Free Report) and Arista Networks (ANET - Free Report) . Asure Software sports a Zacks Rank #1 (Strong Buy) and Adobe and Arista Networks each carry a Zacks Rank #2 (Buy).
Image: Bigstock
Jack Henry (JKHY) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) reported first-quarter fiscal 2024 earnings of $1.39 per share, which beat the Zacks Consensus Estimate by 7.7%. The bottom line decreased by 4.8% from the year-ago fiscal quarter’s reported figure.
Revenues improved 8% from the year-ago fiscal quarter’s reading to $571.37 million. The figure beat the Zacks Consensus Estimate of $564.37 million.
JKHY’s non-GAAP revenues were $565.3 million, up 7.7% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support revenues. Solid growth in processing revenues also contributed well.
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
The Top Line in Detail
Services & Support: Jack Henry generated revenues of $342.2 million from the category (59.9% of revenues). The figure grew 6.9% from the year-ago fiscal quarter’s level, owing to a 10.4% rise in data processing and hosting fees. Accelerating hardware and software usage/subscription revenues were positives.
Processing: The category yielded $229.2 million in revenues (40.1% of revenues), up 9.6% from the year-ago fiscal quarter’s actuals. This can be attributed to a 5.6% increase in Jack Henry's card revenues. Growing payment-processing revenues contributed well.
Segments in Detail
Core: Revenues totaled $186.44 million (32.6% of total revenues), rising 7.6% from the year-ago fiscal quarter’s figure. The figure lagged the Zacks Consensus Estimate of $188 million.
Payments: Revenues summed up to $199.36 million (35% of total revenues), increasing 6.9% from the year-ago fiscal quarter’s level. The figure lagged the consensus mark of $201 million.
Complementary: Revenues came in at $161.37 million (28.2% of total revenues), up 8.7% from the year-earlier fiscal quarter’s number. The figure came ahead of the consensus mark of $156 million.
Corporate & Other: Revenues grossed $24.2 million (4.2% of the total revenues) and surged 15.6% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $18.5 million.
Operating Details
In first-quarter fiscal 2024, total operating expenses were $438.7 million, reflecting a 12.9% increase from the prior-year fiscal quarter. This can primarily be attributed to rising direct costs and personnel costs, including benefits expenses related to the Payrailz acquisition.
As a percentage of revenues, the figure expanded 340 basis points (bps) from the year-ago fiscal quarter’s number to 76.8%.
The operating margin was 23.2%, contracting 340 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Sep 30, 2023, cash and cash equivalents totaled $31.5 million compared with $12.2 million as of Jun 30, 2023.
Trade receivables were $288.7 million in the reported quarter, down from $361.2 million in the previous fiscal quarter.
The current and long-term debt was $245 million at the end of first-quarter fiscal 2024 compared with $275 million at the end of the fourth quarter of fiscal 2023.
Guidance
For fiscal 2024, Jack Henry raised its guidance for GAAP revenues from $2.208-$2.229 billion to $2.211-$2.232 billion. The Zacks Consensus Estimate for revenues is pegged at $2.21 billion.
It also revised guidance for non-GAAP revenues from $2.190-$2.210 billion to $2.193-2.214 billion.
Management raised the guidance for earnings from $4.92-$4.99 to $4.98-$5.04 per share. The Zacks Consensus Estimate for earnings is pegged at $4.96 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Asure Software (ASUR - Free Report) , Adobe (ADBE - Free Report) and Arista Networks (ANET - Free Report) . Asure Software sports a Zacks Rank #1 (Strong Buy) and Adobe and Arista Networks each carry a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have lost 9.1% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 27%.
Adobe shares have gained 67.5% in the year-to-date period. The long-term earnings growth rate for ADBE is currently projected at 13.54%.
Arista Networks shares have increased 74.1% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.40%.