Yahoo Finance Jack Henry (JKHY) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Jack Henry & Associates, Inc. JKHY reported third-quarter fiscal 2024 earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 2.6%. The bottom line increased 6.3% from the year-ago quarter’s reported figure.
Revenues improved 5.9% from the year-ago quarter’s reading to $538.6 million. The figure beat the Zacks Consensus Estimate of $541.4 million.
JKHY’s non-GAAP revenues were $537.7 million, up 7% from the year-ago quarter.
Top-line growth was driven by increased services and support, and processing revenues.
Strong momentum across the Core, Payments, Complementary and Corporate segments contributed well.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. Quote
Top Line in Detail
Services & Support: Jack Henry generated revenues of $305.1 million from the category (56.6% of revenues). The figure grew 4.5% from the year-ago quarter, owing to a 10.6% rise in data processing and hosting fees.
Processing: The category yielded $233.5 million in revenues (43.4% of revenues), up 7.8% from the year-ago quarter’s actual. This was attributed to a 26.1% increase in Jack Henry's digital revenues. Growing payment-processing and card revenues contributed well.
Segments in Detail
Core: Revenues were $166.7 million (30.9% of the total revenues), rising 7.4% from the year-ago quarter. However, it met the Zacks Consensus Estimate.
Payments: Revenues summed up to $201.9 million (37.5% of the total revenues), increasing 5.3% from the year-ago quarter. The figure lagged the consensus mark of $203 million.
Complementary: Revenues were $149.2 million (27.7% of the total revenues), up 5.1% from the year-earlier quarter. The figure missed the Zacks Consensus Estimate of $152 million.
Corporate & Other: Revenues grossed $20.8 million (3.9% of the total revenues) and rose 5.8% from the prior-year quarter. The figure surpassed the consensus mark of $17.9 million.
Operating Details
In third-quarter fiscal 2024, total operating expenses were $426.5 million, a 6.6% increase from the prior-year quarter.
As a percentage of revenues, the figure expanded 50 basis points (bps) from the year-ago quarter to 79.2%.
The operating margin was 20.8%, contracting 50 bps from the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, cash and cash equivalents totaled $27.3 million compared with $26.7 million as of Dec 31, 2023.
Trade receivables were $263.4 million in the reported quarter, down from $270.6 million in the previous fiscal quarter.
The current and long-term debt was $250 million at the end of third-quarter fiscal 2024 compared with $255 million at the end of the second quarter of fiscal 2024.
Guidance
For fiscal 2024, Jack Henry expects GAAP revenues of $2.215-$2.228 billion. The Zacks Consensus Estimate for revenues is pegged at $2.22 billion.
It expects non-GAAP revenues between $2.197 billion and 2.210 billion.
Management raised the guidance for earnings from $5.09-$5.13 to $5.15-$5.19 per share. The Zacks Consensus Estimate for earnings is pegged at $5.13 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Alphabet GOOGL, Badger Meter BMI and Arista Networks ANET. Alphabet and Badger Meter sport a Zacks Rank #1 (Strong Buy), and Arista Networks carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Alphabet have gained 16.5% in the year-to-date period. The long-term earnings growth rate for GOOGL is projected at 22.4%.
Shares of Badger Meter have gained 18.7% in the year-to-date period. The long-term earnings growth rate for BMI is 15.57%.
Shares of Arista Networks have gained 8.9% in the year-to-date period. The long-term earnings growth rate for ANET is 17.48%.
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