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JKHY Gears Up to Report Q3 Earnings: What's in Store for the Stock?

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Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report third-quarter fiscal 2025 results after market close on May 5.

For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $586.14 million, indicating growth of 8.84% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at $1.30 per share, suggesting an increase of 9.24% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.1%.

Factors at Play

Jack Henry’s fiscal third-quarter results are likely to benefit from growing momentum in services and support categories.

The Zacks Consensus Estimate for services and support revenues is pegged at $332.5 million, indicating growth of 9% from the year-ago quarter’s reported figure.

Strength across the Core segment, owing to continued migration from on-premise to private cloud and robust growth in its public cloud offerings, is expected to have aided the upcoming results.

Increasing demand for the Jack Henry Platform, a single public cloud-native platform designed to run the entire financial institution, and the company’s growing technology modernization strategies might have been other positives.

The consensus estimate for the Core segment’s revenues is pegged at $181.5 million, indicating growth of 8.9% from the year-ago reported figure.

Strength across the Payments segment due to robust card transaction solutions and growth in its Enterprise Payment Solutions business is likely to have acted as a tailwind for the company in the quarter under review.

Moreover, JKHY’s strong sales across Financial Crimes Defender and continued expansion of faster payments infrastructure, PayCenter, are likely to have driven its Payments segment in the to-be-reported quarter.

The consensus mark for Payments revenues is pegged at $215.8 million, indicating growth of 6.9% year over year.

The company’s diverse mix of solutions, including Banno, LoanVantage and Treasury Management, among others, is expected to have driven growth in the Complementary segment during the fiscal second quarter.

The consensus estimate for Complementary revenues is pegged at $164.9 million, indicating growth of 10.5% from the year-ago quarter.

However, ongoing tariff wars, geopolitical tensions and macroeconomic pressure are likely to affect JKHY’s results in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, 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. But that’s not the case here.

Although Jack Henry currently carries a Zacks Rank #3, the company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

HealthStream (HSTM - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report first-quarter 2025 results on May 5. The Zacks Consensus Estimate for HSTM’s first-quarter 2025 earnings per share is pegged at 16 cents, which remained unchanged over the past 60 days. HSTM shares have gained 23.6% over the past year.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3 at present.

It is slated to report first-quarter fiscal 2025 results on May 6. The Zacks Consensus Estimate for AMD’s first-quarter 2025 earnings is pegged at 93 cents per share, unchanged over the past 60 days, indicating a rise of 30% from the year-ago quarter’s reported figure. AMD shares have plunged 33.9% over the past year.

Lemonade (LMND - Free Report) has an Earnings ESP of +3.40% and carries a Zacks Rank #3 at present.

It is set to report first-quarter 2025 results on May 6. The Zacks Consensus Estimate for LMND’s first-quarter earnings is pegged at a loss of 94 cents per share, narrowed by a penny over the past 30 days, indicating a decline of 40% from the year-ago quarter’s reported figure. LMND shares have surged 60.7% over the past year.

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