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) Extends MDT Partnership to Boost Core Segment
Read MoreHide Full Article
Jack Henry (JKHY - Free Report) announced the extension of its partnership with Member Driven Technologies ("MDT") to continue offering its core processing system to credit unions.
Per the terms of the deal, Jack Henrey’s credit union core platform, Symitar, is being used by MDT to provide credit unions with a private cloud solution for core processing and IT requirements.
With the extension of the partnership, Jack Henry and MDT will help credit unions enhance their technology modernization strategy by utilizing advanced cloud-based and digital tools for a competitive edge.
We note that the latest announcement will solidify Jack Henry’s customer base for its core platform offerings.
This, in turn, will boost the company’s Core segment.
The latest partnership extension highlights strength in Jack Henry’s Core segment offerings.
Recently, Symitar partnered with Cotribute to integrate the latter with its service-based programming interface, SymXchange, ensuring data integrity through a service layer that manages interactions between third-party vendors and credit unions.
Further, this partnership enables Jack Henry to allow customers to access digital onboarding flows for various financial products, reduce operational workload and enhance compliance.
We believe that the above-mentioned endeavors will likely aid the performance of the underlined segment.
For fourth-quarter fiscal 2023, the Core segment generated revenues of $168.7 million, indicating year-over-year growth of 11%.
Our model estimate for fiscal 2024 Core segment revenues is pegged at $704.6 million, suggesting growth of 7.4% from fiscal 2023.
Growing Clientele
Apart from MDT, Carver Federal Savings Bank picked Jack Henry as its technology partner by implementing the new Financial Crimes Defender solution to combat fraud, enhance efficiency and reduce risk, allowing staff to make smarter decisions.
Further, Jack Henry was chosen by Machias Savings Bank to modernize its technology stack and enhance customer service as the bank grows.
Additionally, the Federal Reserve picked Jack Henry to support live transactions on the FedNow Service, the Federal Reserve's instant payment rail, becoming one of the first service providers to do so.
We note that an expanding customer base will likely aid Jack Henry’s overall financial performance in the upcoming period.
For fiscal 2024, the company expects GAAP revenues in the band of $2.208-$2.229 billion.
However, Jack Henry is currently suffering from mounting expenses. Rising headcounts and personnel costs are weighing on margin expansion. Growing expenses related to the card processing platform remain concerns.
Image: Bigstock
Jack Henry (JKHY) Extends MDT Partnership to Boost Core Segment
Jack Henry (JKHY - Free Report) announced the extension of its partnership with Member Driven Technologies ("MDT") to continue offering its core processing system to credit unions.
Per the terms of the deal, Jack Henrey’s credit union core platform, Symitar, is being used by MDT to provide credit unions with a private cloud solution for core processing and IT requirements.
With the extension of the partnership, Jack Henry and MDT will help credit unions enhance their technology modernization strategy by utilizing advanced cloud-based and digital tools for a competitive edge.
We note that the latest announcement will solidify Jack Henry’s customer base for its core platform offerings.
This, in turn, will boost the company’s Core segment.
Jack Henry & Associates, Inc. Price and Consensus
Jack Henry & Associates, Inc. price-consensus-chart | Jack Henry & Associates, Inc. Quote
Strength in Core Segment
The latest partnership extension highlights strength in Jack Henry’s Core segment offerings.
Recently, Symitar partnered with Cotribute to integrate the latter with its service-based programming interface, SymXchange, ensuring data integrity through a service layer that manages interactions between third-party vendors and credit unions.
Further, this partnership enables Jack Henry to allow customers to access digital onboarding flows for various financial products, reduce operational workload and enhance compliance.
We believe that the above-mentioned endeavors will likely aid the performance of the underlined segment.
For fourth-quarter fiscal 2023, the Core segment generated revenues of $168.7 million, indicating year-over-year growth of 11%.
Our model estimate for fiscal 2024 Core segment revenues is pegged at $704.6 million, suggesting growth of 7.4% from fiscal 2023.
Growing Clientele
Apart from MDT, Carver Federal Savings Bank picked Jack Henry as its technology partner by implementing the new Financial Crimes Defender solution to combat fraud, enhance efficiency and reduce risk, allowing staff to make smarter decisions.
Further, Jack Henry was chosen by Machias Savings Bank to modernize its technology stack and enhance customer service as the bank grows.
Additionally, the Federal Reserve picked Jack Henry to support live transactions on the FedNow Service, the Federal Reserve's instant payment rail, becoming one of the first service providers to do so.
We note that an expanding customer base will likely aid Jack Henry’s overall financial performance in the upcoming period.
For fiscal 2024, the company expects GAAP revenues in the band of $2.208-$2.229 billion.
However, Jack Henry is currently suffering from mounting expenses. Rising headcounts and personnel costs are weighing on margin expansion. Growing expenses related to the card processing platform remain concerns.
JKHY has lost 16.8% in the year-to-date period.
Zacks Rank & Stocks to Consider
Currently, JKHY carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Dell Technologies (DELL - Free Report) , Applied Materials (AMAT - Free Report) and Arista Networks (ANET - Free Report) . While Dell Technologies sports a Zacks Rank #1 (Strong Buy), Applied Materials and Arista Networks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have gained 68.8% in the year-to-date period. DELL’s long-term earnings growth rate is currently projected at 12%
Shares of Applied Materials have gained 58.1% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
Arista Networks shares have gained 44.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.