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Jack Henry (JKHY) Up 5.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Jack Henry (JKHY - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jack Henry due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jack Henry Q4 Earnings Top Estimates, Revenues Up Y/Y
Jack Henry & Associates posted fourth-quarter fiscal 2024 earnings of $1.38 per share, beating the Zacks Consensus Estimate by 6.1%. The bottom line increased 3% from the year-ago quarter’s reported figure.
Revenues rose 4.7% from the year-ago quarter’s reading to $559.9 million. The figure missed the Zacks Consensus Estimate of $563.4 million.
JKHY’s non-GAAP revenues were $553.2 million, up 6.4% from the year-ago quarter’s tally.
Higher processing revenues drove top-line growth.
Strong momentum across the Core, Payments, Complementary and Corporate segments contributed well.
Top Line in Detail
Services & Support: JKHY generated revenues of $316.7 million from the category (56.6% of revenues). The figure rose 1.5% from the year-ago quarter’s levels, owing to an 11.5% rise in data processing and hosting fees.
Processing: The category yielded $243.2 million in revenues (43.4% of revenues), up 9.2% from the year-ago quarter’s actual. The upside can be attributed to a 14% increase in Jack Henry's digital and transaction revenues and 8.3% growth in card revenues. Strength in payment processing and remote capture also contributed well.
Segments in Detail
Core: Revenues were $172.04 million (30.7% of the total revenues), rising 3% from the year-ago quarter’s figure. However, the metric lagged the Zacks Consensus Estimate of $177 million.
Payments: Revenues summed up to $212.6 (38% of the total revenues), increasing 7.7% from the year-ago quarter’s figure. The metric surpassed the consensus mark of $207 million.
Complementary: Revenues were $155.1 million (27.7% of the total revenues), up 2.7% from the year-earlier quarter’s levels. The figure missed the Zacks Consensus Estimate of $158 million.
Corporate & Other: Revenues grossed $20.1 million (3.6% of the total revenues) and rose 5.8% from the prior-year quarter. The figure surpassed the consensus mark of $19.96 million.
Operating Details
In fourth-quarter fiscal 2024, total operating expenses were $434.3 million, up 5.8% from the prior-year quarter’s figure.
As a percentage of revenues, the figure expanded 80 basis points (bps) from the year-ago quarter’s tally to 77.6%
The operating margin was 22.4%, contracting 80 bps from the year-ago quarter’s tally.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $38.3 million compared with $27.3 million as of Mar 31, 2024.
Trade receivables were $333.03 million in the reported quarter, up from $263.4 million registered in the previous quarter.
The current and long-term debt was $150 million at the end of fourth-quarter fiscal 2024 compared with $250 million at the end of the fiscal third quarter.
Guidance
For the fiscal 2025, Jack Henry expects GAAP revenues of $2.369-$2.391 billion.
GAAP operating margin is anticipated to be between 23% and 23.2%.
It expects non-GAAP revenues to be between $2.353 billion and 2.375 billion.
Management expects GAAP earnings per share within the range of $5.78-$5.87.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Jack Henry has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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A month has gone by since the last earnings report for Jack Henry (JKHY - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jack Henry due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jack Henry Q4 Earnings Top Estimates, Revenues Up Y/Y
Jack Henry & Associates posted fourth-quarter fiscal 2024 earnings of $1.38 per share, beating the Zacks Consensus Estimate by 6.1%. The bottom line increased 3% from the year-ago quarter’s reported figure.
Revenues rose 4.7% from the year-ago quarter’s reading to $559.9 million. The figure missed the Zacks Consensus Estimate of $563.4 million.
JKHY’s non-GAAP revenues were $553.2 million, up 6.4% from the year-ago quarter’s tally.
Higher processing revenues drove top-line growth.
Strong momentum across the Core, Payments, Complementary and Corporate segments contributed well.
Top Line in Detail
Services & Support: JKHY generated revenues of $316.7 million from the category (56.6% of revenues). The figure rose 1.5% from the year-ago quarter’s levels, owing to an 11.5% rise in data processing and hosting fees.
Processing: The category yielded $243.2 million in revenues (43.4% of revenues), up 9.2% from the year-ago quarter’s actual. The upside can be attributed to a 14% increase in Jack Henry's digital and transaction revenues and 8.3% growth in card revenues. Strength in payment processing and remote capture also contributed well.
Segments in Detail
Core: Revenues were $172.04 million (30.7% of the total revenues), rising 3% from the year-ago quarter’s figure. However, the metric lagged the Zacks Consensus Estimate of $177 million.
Payments: Revenues summed up to $212.6 (38% of the total revenues), increasing 7.7% from the year-ago quarter’s figure. The metric surpassed the consensus mark of $207 million.
Complementary: Revenues were $155.1 million (27.7% of the total revenues), up 2.7% from the year-earlier quarter’s levels. The figure missed the Zacks Consensus Estimate of $158 million.
Corporate & Other: Revenues grossed $20.1 million (3.6% of the total revenues) and rose 5.8% from the prior-year quarter. The figure surpassed the consensus mark of $19.96 million.
Operating Details
In fourth-quarter fiscal 2024, total operating expenses were $434.3 million, up 5.8% from the prior-year quarter’s figure.
As a percentage of revenues, the figure expanded 80 basis points (bps) from the year-ago quarter’s tally to 77.6%
The operating margin was 22.4%, contracting 80 bps from the year-ago quarter’s tally.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $38.3 million compared with $27.3 million as of Mar 31, 2024.
Trade receivables were $333.03 million in the reported quarter, up from $263.4 million registered in the previous quarter.
The current and long-term debt was $150 million at the end of fourth-quarter fiscal 2024 compared with $250 million at the end of the fiscal third quarter.
Guidance
For the fiscal 2025, Jack Henry expects GAAP revenues of $2.369-$2.391 billion.
GAAP operating margin is anticipated to be between 23% and 23.2%.
It expects non-GAAP revenues to be between $2.353 billion and 2.375 billion.
Management expects GAAP earnings per share within the range of $5.78-$5.87.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Jack Henry has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.