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Jack Henry (JKHY) to Report Q3 Earnings: What's in Store?
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Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fiscal third-quarter 2020 results on May 4.
For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $409.65 million, indicating growth of 7.7% from the prior-year quarter.
Further, the consensus mark for earnings per share stands at 81 cents per share, which suggests an improvement of 5.2% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 4.94%, on average.
Jack Henry & Associates, Inc. Price and EPS Surprise
Jack Henry’s strength across technology solutions, expanding customer relationships and spending environment are likely to have benefited the fiscal third-quarter performance.
Further, solid momentum across Core, Payments and Complementary segments is expected to get reflected in the to-be-reported quarter’s results.
The company’s robust core solutions are likely to have sustained momentum across core customer contracts in the to-be-reported quarter.
Further, the new cloud-based digital banking system — JHA BankAnywhere — might have helped the company in gaining traction across digital banks in the to-be-reported quarter.
During the fiscal third quarter, the company integrated its BusinessManager into the SilverLake System core platform to streamline accounts receivable (A/R) financing. This is expected to have strengthened its presence across banks during the quarter under review.
Furthermore, growing momentum of Banno Digital suite, new card processing solution and treasury management, is likely to have driven the performance in the quarter under review.
In the to-be-reported quarter, Simmons Bank selected Banno Digital Platform, which strengthened its relationship with Jack Henry. This is likely to have contributed to the company’s fiscal third-quarter performance.
Additionally, robust debit and credit processing solutions of the company are anticipated to have bolstered its debit and credit clientele during the fiscal third quarter.
Also, the company’s consumer bill pay product lines that allow financial institutions to offer near-real-time card-funded bill payments using credit and debit cards, are likely to have aided the performance of its Payments segment’s performance in the to-be-reported quarter.
All these factors are likely to have driven Jack Henry’s performance in the quarter under review.
However, continuous declining license revenues due to customer migration to private cloud are expected to have negatively impacted the fiscal third-quarter margins. Further, rising headcounts and personnel costs are likely to get reflected in the fiscal third-quarter results.
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 some companies that have the right combination of elements to post an earnings beat this time around.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and a Zacks Rank #2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #3.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Jack Henry (JKHY) to Report Q3 Earnings: What's in Store?
Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fiscal third-quarter 2020 results on May 4.
For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $409.65 million, indicating growth of 7.7% from the prior-year quarter.
Further, the consensus mark for earnings per share stands at 81 cents per share, which suggests an improvement of 5.2% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 4.94%, on average.
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 strength across technology solutions, expanding customer relationships and spending environment are likely to have benefited the fiscal third-quarter performance.
Further, solid momentum across Core, Payments and Complementary segments is expected to get reflected in the to-be-reported quarter’s results.
The company’s robust core solutions are likely to have sustained momentum across core customer contracts in the to-be-reported quarter.
Further, the new cloud-based digital banking system — JHA BankAnywhere — might have helped the company in gaining traction across digital banks in the to-be-reported quarter.
During the fiscal third quarter, the company integrated its BusinessManager into the SilverLake System core platform to streamline accounts receivable (A/R) financing. This is expected to have strengthened its presence across banks during the quarter under review.
Furthermore, growing momentum of Banno Digital suite, new card processing solution and treasury management, is likely to have driven the performance in the quarter under review.
In the to-be-reported quarter, Simmons Bank selected Banno Digital Platform, which strengthened its relationship with Jack Henry. This is likely to have contributed to the company’s fiscal third-quarter performance.
Additionally, robust debit and credit processing solutions of the company are anticipated to have bolstered its debit and credit clientele during the fiscal third quarter.
Also, the company’s consumer bill pay product lines that allow financial institutions to offer near-real-time card-funded bill payments using credit and debit cards, are likely to have aided the performance of its Payments segment’s performance in the to-be-reported quarter.
All these factors are likely to have driven Jack Henry’s performance in the quarter under review.
However, continuous declining license revenues due to customer migration to private cloud are expected to have negatively impacted the fiscal third-quarter margins. Further, rising headcounts and personnel costs are likely to get reflected in the fiscal third-quarter results.
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 some companies that have the right combination of elements to post an earnings beat this time around.
Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and a Zacks Rank #2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>