Back to top

Image: Bigstock

Jack Henry (JKHY) to Report Q1 Earnings: What's in Store?

Read MoreHide Full Article

Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fiscal first-quarter 2020 results on Nov 4.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, average being 5.57%.

Which Way Are Q1 Estimates Treading?

For the fiscal first quarter, the Zacks Consensus Estimate for sales is pegged at $420.86 million.

Further, the consensus mark for earnings per share is pegged at $1.05.

Past-Quarter Performance

In the fiscal fourth quarter, Jack Henry reported earnings of 79 per share, with a positive earnings surprise of 2.60%. The figure also declined 9.2% on a year-over-year basis.

Revenues advanced 4% year over year to $393.51 million. The figure also outpaced the Zacks Consensus Estimate of $391 million.

Let’s see how things are shaping up prior to this announcement.

Jack Henry & Associates, Inc. Price and EPS Surprise

 

Jack Henry & Associates, Inc. Price and EPS Surprise

Jack Henry & Associates, Inc. price-eps-surprise | Jack Henry & Associates, Inc. Quote

Factors to Consider

Jack Henry’s fiscal first-quarter results are likely to reflect portfolio strength. The company’s robust core solutions are expected to have driven the top line in the first quarter on the back of growing adoption rate. Moreover, these solutions have been attracting new core customer contracts, a trend which might have continued in the first quarter.

Notably, the company’s Symitar Vendor Integration Program was joined by a content services provider, Hyland, during the quarter under review. This is likely to have aided Symitar’s first-quarter performance.

Further, growing momentum of Banno Digital suite is expected to have expanded the company’s clientele during the to-be-reported quarter. Also, debit and credit processing solutions portfolio is likely to have strengthened Jack Henry’s debit and credit customer base in the first quarter.

Additionally, growing revenue from the company’s processing customers are expected to have contributed to the first quarter results.

On Aug 22, Jack Henry revealed that 500 banks, credit unions and non-regulated institutions are utilizing ProfitStars’ core agnostic products and services, which is expected to have accelerated revenue generation in the to-be-reported quarter.

However, slowdown in the license and in-house implementation revenues owing to shift in customers’ preference to outsourced delivery from on-premise solutions, is expected to have impacted Jack Henry’s fiscal first-quarter results.

Further, mounting expenses related the payments platform is likely to have negatively impacted the company’s profitability during the quarter under review.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Jack Henry this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jack Henry has an Earnings ESP of 0.00% and a Zacks Rank #2.

Stocks to Consider

Here are a few stocks, which, per our model, have the right combination of elements to post an earnings beat this quarter:

MeetMe has an Earnings ESP of +4.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

BLACKLINE (BL - Free Report) has an Earnings ESP of +21.74% and a Zacks Rank #3.

Fastly (FSLY - Free Report) has an Earnings ESP of 1.82% and a Zacks Rank #3.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Jack Henry & Associates, Inc. (JKHY) - free report >>

BlackLine (BL) - free report >>

Fastly, Inc. (FSLY) - free report >>

Published in