Jack Henry & Associates Earnings: Here’s Why Investors are Ambivalent Now

Jack Henry & Associates Inc. (NASDAQ:JKHY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Jack Henry & Associates Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10% to $0.55 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Rose 11.81% to $298.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jack Henry & Associates Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $289.11 million.

Quoting Management: According to Jack Prim, CEO, “We are very pleased to announce record revenue, earnings and backlog of future business for the fourth quarter and full fiscal year. A year ago for the first time we closed the fiscal year with over $1 billion in total revenue and company market capitalization of over $3 billion. This year we followed that performance with double digit organic revenue growth and market cap of over $4 billion. We delivered a balanced performance that benefitted our shareholders, customers and employees.”

Key Stats (on next page)…

Revenue increased 5.88% from $281.54 million in the previous quarter. EPS increased 3.77% from $0.53 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.57. For the current year, the average estimate is a profit of $2.1, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)