/Jack%20Henry%20%26%20Associates%2C%20Inc_%20logo%20on%20smart%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Valued at a market cap of $13.6 billion, Jack Henry & Associates, Inc. (JKHY) is a financial technology company that connects people and financial institutions through technology solutions and payment processing services. The Monett, Missouri-based company primarily offers transaction processing, business process automation, and information management solutions and services and is expected to announce its fiscal Q1 earnings results on Tuesday, Nov. 5.
Ahead of this event, analysts expect the fintech company to report a profit of $1.61 per share, up 15.8% from $1.39 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. In Q4 2024, the company’s EPS of $1.38 topped the consensus estimates by almost 6.2% and increased by 3% from a year ago. This can be attributed to JKHY’s strong momentum across all of its segments and a 9.2% growth in processing revenues, driven by a 14% increase in its digital and transaction revenues and an 8.3% growth in card revenues.
For fiscal 2025, analysts expect JKHY to report an EPS of $5.82, up 11.3% from $5.23 in fiscal 2024. Moreover, EPS is expected to increase 8.1% year-over-year to $6.29 in fiscal 2026.
Shares of JKHY have gained 13.9% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) nearly 23% surge and the Technology Select Sector SPDR Fund’s (XLK) 20% return over the same period.
Despite beating Wall Street’s earnings estimates, shares of JKHY closed down marginally after its Q4 and full-year 2024 earnings release on Aug. 20. This was primarily because of its Q4 revenue of $559.9 million, missing the consensus estimates of $563.4 million. Moreover, the company’s operating margin of 22.4% contracted 80 bps from a year ago, which might have further dampened investor confidence.
Analysts' consensus view on Jack Henry & Associates’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, five recommend a "Strong Buy," 11 suggest "Hold," and one indicates a “Strong Sell.” This configuration is more bullish than three months ago, with four analysts suggesting a "Strong Buy." As of writing, the stock is trading above its mean price target of $185.07.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
