We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jack Henry (JKHY) Q2 Earnings & Revenues Beat, Rise Y/Y
Read MoreHide Full Article
Jack Henry & Associates, Inc. (JKHY - Free Report) reported second-quarter fiscal 2022 earnings of $1.30 per share, which surpassed the Zacks Consensus Estimate by 12.1%. Further, the bottom line increased 38.3% year over year.
Revenues improved 17% year over year to $493.9 million. Further, the top line beat the Zacks Consensus Estimate of $472.2 million.
The company’s non-GAAP revenues were $466.9 million, up 11% from the year-ago quarter.
Top-line growth was driven by growing processing, and services and support revenues. Additionally, strength across the Core, Payments, Complementary and Corporate segments drove the results.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Services & Support: The company generated revenues of $296.2 million from the category (60% of revenues). Notably, the figure rose 18% from the year-ago quarter, owing to growth in data processing and hosting fees, and conversion/merger revenues. Also, accelerating deconversion fee revenues were tailwinds.
Processing: The category yielded revenues of $197.7 million (40% of revenues) in the reported quarter, up 15% year over year. This can be attributed to 14% growth in card-processing fee revenues.
Segments in Detail
Core: The company generated revenues of $154.9 million from the segment (31.4% of total revenues), increasing 15% year over year.
Payments: The segment yielded revenues of $182.5 million (36.9% of total revenues), increasing 18% from the year-ago quarter.
Complementary: The segment generated $141.7 million in revenues (28.7% of total revenues), increasing 17% year over year.
Corporate & Other: The company generated revenues of $14.8 million from the segment (3% of total revenues), up 36% from the prior-year quarter.
Operating Details
In second-quarter fiscal 2022, total operating expenses were $368.2 million, reflecting a year-over-year increase of 12%. This can primarily be attributed to higher personnel costs and rising expenses related to the company’s card-processing platform.
As a percentage of revenues, the figure contracted 320 basis points (bps) year over year to 74.6%.
Notably, the operating margin was 25% in the reported quarter, which expanded 300 bps on a year-over-year basis.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents totaled $29.1 million, which decreased from $44.3 million as of Sep 30, 2021.
Trade receivables were $236.1 million in the reported quarter, down from $253.2 million in the previous quarter.
The current and long-term debt stood at $240.1 million at the end of the fiscal second quarter compared with $65.2 million at the end of the fiscal first quarter.
Guidance
For fiscal 2022, the company raised its guidance for GAAP revenues from $1.910-$1.919 billion to $1.939-$1.942 billion, indicating year-over-year growth of 10.3-10.5%. Notably, the Zacks Consensus Estimate for revenues is pegged at $1.91 billion.
The company’s expectation for non-GAAP revenues increased from $1.866-$1.875 billion to $1.889-$1.892 billion, suggesting growth of 8.8-9% from that reported in 2021.
It has also raised the guidance for earnings from $4.64-$4.73 to $4.75-$4.82 per share, indicating year-over-year growth of 15.3-17%. The Zacks Consensus Estimate for the same is pegged at $4.70 per share.
Zacks Rank & Other Stocks to Consider
Jack Henry currently carries a Zacks Rank #2 (Buy).
Bruker is scheduled to release fourth-quarter 2021 results on Feb 11. The company has gained 15.7% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 37.3% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 17.8% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Jack Henry (JKHY) Q2 Earnings & Revenues Beat, Rise Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) reported second-quarter fiscal 2022 earnings of $1.30 per share, which surpassed the Zacks Consensus Estimate by 12.1%. Further, the bottom line increased 38.3% year over year.
Revenues improved 17% year over year to $493.9 million. Further, the top line beat the Zacks Consensus Estimate of $472.2 million.
The company’s non-GAAP revenues were $466.9 million, up 11% from the year-ago quarter.
Top-line growth was driven by growing processing, and services and support revenues. Additionally, strength across the Core, Payments, Complementary and Corporate segments drove the results.
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: The company generated revenues of $296.2 million from the category (60% of revenues). Notably, the figure rose 18% from the year-ago quarter, owing to growth in data processing and hosting fees, and conversion/merger revenues. Also, accelerating deconversion fee revenues were tailwinds.
Processing: The category yielded revenues of $197.7 million (40% of revenues) in the reported quarter, up 15% year over year. This can be attributed to 14% growth in card-processing fee revenues.
Segments in Detail
Core: The company generated revenues of $154.9 million from the segment (31.4% of total revenues), increasing 15% year over year.
Payments: The segment yielded revenues of $182.5 million (36.9% of total revenues), increasing 18% from the year-ago quarter.
Complementary: The segment generated $141.7 million in revenues (28.7% of total revenues), increasing 17% year over year.
Corporate & Other: The company generated revenues of $14.8 million from the segment (3% of total revenues), up 36% from the prior-year quarter.
Operating Details
In second-quarter fiscal 2022, total operating expenses were $368.2 million, reflecting a year-over-year increase of 12%. This can primarily be attributed to higher personnel costs and rising expenses related to the company’s card-processing platform.
As a percentage of revenues, the figure contracted 320 basis points (bps) year over year to 74.6%.
Notably, the operating margin was 25% in the reported quarter, which expanded 300 bps on a year-over-year basis.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents totaled $29.1 million, which decreased from $44.3 million as of Sep 30, 2021.
Trade receivables were $236.1 million in the reported quarter, down from $253.2 million in the previous quarter.
The current and long-term debt stood at $240.1 million at the end of the fiscal second quarter compared with $65.2 million at the end of the fiscal first quarter.
Guidance
For fiscal 2022, the company raised its guidance for GAAP revenues from $1.910-$1.919 billion to $1.939-$1.942 billion, indicating year-over-year growth of 10.3-10.5%. Notably, the Zacks Consensus Estimate for revenues is pegged at $1.91 billion.
The company’s expectation for non-GAAP revenues increased from $1.866-$1.875 billion to $1.889-$1.892 billion, suggesting growth of 8.8-9% from that reported in 2021.
It has also raised the guidance for earnings from $4.64-$4.73 to $4.75-$4.82 per share, indicating year-over-year growth of 15.3-17%. The Zacks Consensus Estimate for the same is pegged at $4.70 per share.
Zacks Rank & Other Stocks to Consider
Jack Henry currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Bruker (BRKR - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 11. The company has gained 15.7% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 37.3% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 17.8% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.