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Jack Henry (JKHY) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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Jack Henry & Associates, Inc. (JKHY - Free Report) reported second-quarter fiscal 2024 earnings of $1.22 per share, which beat the Zacks Consensus Estimate by 7.02%. The bottom line increased 10.9% from the year-ago fiscal quarter’s reported figure.
Revenues improved 8% from the year-ago fiscal quarter’s reading to $545.7 million. The figure beat the Zacks Consensus Estimate of $539.45 million.
JKHY’s non-GAAP revenues were $540.8 million, up 8.4% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support and processing revenues.
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 $311.99 million from the category (57.2% of revenues). The figure grew 7.3% from the year-ago fiscal quarter’s level, owing to an 11% rise in data processing and hosting fees. Further, the increase in user group revenues was a positive.
Processing: The category yielded $233.71 million in revenues (42.8% of revenues), up 8.9% from the year-ago fiscal quarter’s actuals. This can be attributed to a 29.6% and 5.6% increase in Jack Henry's digital and card revenues, respectively. Growing payment-processing revenues contributed well.
Segments in Detail
Core: Revenues totaled $165.6 million (30.3% of total revenues), rising 7.9% from the year-ago fiscal quarter’s figure. However, it lagged the Zacks Consensus Estimate of $166.3 million.
Payments: Revenues summed up to $203.8 million (37.3% of total revenues), increasing 6.5% from the year-ago fiscal quarter’s level. The figure came ahead of the consensus mark of $203.1 million.
Complementary: Revenues came in at $152.5 million (28% of total revenues), up 7.3% from the year-earlier fiscal quarter’s number. The figure beat the Zacks Consensus Estimate of $151.6 million.
Corporate & Other: Revenues grossed $23.8 million (4.4% of the total revenues) and surged 30.9% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $17.1 million.
Operating Details
In second-quarter fiscal 2024, total operating expenses were $426.7 million, indicating a 7.2% increase from the prior-year fiscal quarter.
As a percentage of revenues, the figure contracted 60 basis points (bps) from the year-ago fiscal quarter’s number to 78.2%.
The operating margin was 21.8%, expanding 60 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Dec 31, 2023, cash and cash equivalents totaled $26.71 million compared with $31.5 million as of Sep 30, 2023.
Trade receivables were $270.6 million in the reported quarter, down from $288.7 million in the previous fiscal quarter.
The current and long-term debt was $255 million at the end of second-quarter fiscal 2024 compared with $245 million at the end of the first quarter of fiscal 2024.
Guidance
For fiscal 2024, Jack Henry revised its guidance for GAAP revenues from $2.211-$2.232 billion to $2.215-$2.228 billion. The Zacks Consensus Estimate for revenues is pegged at $2.22 billion.
It also updated guidance for non-GAAP revenues from $2.193-2.214 billion to $2.197-2.210 billion.
Management raised the guidance for earnings from $4.98-$5.04 to $5.09-$5.13 per share. The Zacks Consensus Estimate for earnings is pegged at $5.01 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #4 (Sell).
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Jack Henry (JKHY) Q2 Earnings & Revenues Top Estimates, Up Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) reported second-quarter fiscal 2024 earnings of $1.22 per share, which beat the Zacks Consensus Estimate by 7.02%. The bottom line increased 10.9% from the year-ago fiscal quarter’s reported figure.
Revenues improved 8% from the year-ago fiscal quarter’s reading to $545.7 million. The figure beat the Zacks Consensus Estimate of $539.45 million.
JKHY’s non-GAAP revenues were $540.8 million, up 8.4% from the year-ago fiscal quarter’s level.
Top-line growth was driven by growing services and support and processing revenues.
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 $311.99 million from the category (57.2% of revenues). The figure grew 7.3% from the year-ago fiscal quarter’s level, owing to an 11% rise in data processing and hosting fees. Further, the increase in user group revenues was a positive.
Processing: The category yielded $233.71 million in revenues (42.8% of revenues), up 8.9% from the year-ago fiscal quarter’s actuals. This can be attributed to a 29.6% and 5.6% increase in Jack Henry's digital and card revenues, respectively. Growing payment-processing revenues contributed well.
Segments in Detail
Core: Revenues totaled $165.6 million (30.3% of total revenues), rising 7.9% from the year-ago fiscal quarter’s figure. However, it lagged the Zacks Consensus Estimate of $166.3 million.
Payments: Revenues summed up to $203.8 million (37.3% of total revenues), increasing 6.5% from the year-ago fiscal quarter’s level. The figure came ahead of the consensus mark of $203.1 million.
Complementary: Revenues came in at $152.5 million (28% of total revenues), up 7.3% from the year-earlier fiscal quarter’s number. The figure beat the Zacks Consensus Estimate of $151.6 million.
Corporate & Other: Revenues grossed $23.8 million (4.4% of the total revenues) and surged 30.9% from the prior-year fiscal quarter’s level. The figure came ahead of the consensus mark of $17.1 million.
Operating Details
In second-quarter fiscal 2024, total operating expenses were $426.7 million, indicating a 7.2% increase from the prior-year fiscal quarter.
As a percentage of revenues, the figure contracted 60 basis points (bps) from the year-ago fiscal quarter’s number to 78.2%.
The operating margin was 21.8%, expanding 60 bps from the year-ago fiscal quarter’s number.
Balance Sheet
As of Dec 31, 2023, cash and cash equivalents totaled $26.71 million compared with $31.5 million as of Sep 30, 2023.
Trade receivables were $270.6 million in the reported quarter, down from $288.7 million in the previous fiscal quarter.
The current and long-term debt was $255 million at the end of second-quarter fiscal 2024 compared with $245 million at the end of the first quarter of fiscal 2024.
Guidance
For fiscal 2024, Jack Henry revised its guidance for GAAP revenues from $2.211-$2.232 billion to $2.215-$2.228 billion. The Zacks Consensus Estimate for revenues is pegged at $2.22 billion.
It also updated guidance for non-GAAP revenues from $2.193-2.214 billion to $2.197-2.210 billion.
Management raised the guidance for earnings from $4.98-$5.04 to $5.09-$5.13 per share. The Zacks Consensus Estimate for earnings is pegged at $5.01 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 Arista Networks (ANET - Free Report) , Badger Meter (BMI - Free Report) and AMETEK (AME - Free Report) . Arista Networks sports a Zacks Rank #1 (Strong Buy), while Badger Meter and AMETEK each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have surged 110.5% in the past year. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Badger Meter shares have gained 15.7% in the past year. The long-term earnings growth rate for BMI is currently anticipated at 12.27%.
AMETEK shares have risen 13.5% in the past year. The long-term earnings growth rate for AME is currently pegged at 9.58%.