Jack Henry & Associates Earnings: Here’s Why Investors are Not Excited 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. Shares are down 0.65%.

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Jack Henry & Associates Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.19% to $0.53 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Rose 9.83% to $281.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jack Henry & Associates Inc. reported adjusted EPS income of $0.53 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $276.04 million.

Quoting Management: “We continued our strong growth in fiscal 2013 with record revenue for the quarter and the first nine months compared to any fiscal year, along with record backlog as March 31,” stated Tony Wormington, President. “We had strong license growth in the quarter compared to last year’s quarter. However, our support and services revenue was once again the leading contributor to our total revenue growth with 11% growth in that revenue line for the quarter compared to last year. Once again the primary driver within support and services is our electronic payments.”

Key Stats (on next page)…

Revenue increased 1.01% from $278.69 million in the previous quarter. EPS decreased 7.02% from $0.57 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 $0.51 to a profit $0.52. For the current year, the average estimate has moved up from a profit of $1.99 to a profit of $2.09 over the last ninety days.

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