We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Q2 Earnings & Revenues Top Estimates, Up Y/Y
Read MoreHide Full Article
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).
Image: Bigstock
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%.