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Jack Henry (JKHY) Boosts Clientele With FFBKC Partnership
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Jack Henry’s (JKHY - Free Report) shares have gained 1.1% in the year-to-date period against the industry’s 5.1% decline. The company is continuously benefiting from an expanding clientele on the back of its robust banking solutions.
Recently, First Federal Bank of Kansas City (“FFBKC”) selected Jack Henry to expand its services to small businesses, particularly in real estate.
To support these businesses, the bank will use Jack Henry's hosted core processing solution, Banno Digital Platform, and LoanVantage, along with enterprise solutions like treasury and workflow management tools to make modern service components available in the public cloud, allowing it to innovate faster and meet customer needs.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Customer Base
The latest move by FFBKC has added strength to Jack Henry’s customer base.
This apart, Jack Henry recently expanded its clientele with the addition of the Forest Park Bank. Forest Park Bank will utilize Jack Henry’s Banno Digital Platform, contactless cards and digital wallets to meet the needs of younger customers.
The Oklahoma City, OK-based Quail Creek Bank also selected Jack Henry to deliver enhanced experience to small businesses and individual clients. Per the terms, Quail Creek Bank will leverage Jack Henry’s banking solutions, including real-time payments, digital account opening and electronic document delivery.
The Copper State Credit Union selected Jack Henry to integrate the latter's single technology platform into its operations. The credit union will leverage JKHY’s open infrastructure to create a new digital banking platform that will provide a comprehensive view of members' finances, enable instant payments, manage credit scores and protect their data.
Jack Henry also partnered with First State Bank, enabling the latter to leverage its modern, customizable core processing solution and the Banno Digital Platform to automate processes and enhance efficiencies for retail and commercial customers.
Portfolio Strength: Key Catalyst
Jack Henry’s strong customer momentum is driven by its portfolio strength. Hence, it is making concerted efforts to bolster its portfolio further.
It recently introduced a new Daily Dashboard for its cloud platform, Financial Performance Suite. The Daily Dashboard provides financial and performance insights for financial institutions to help analyze loan and deposit balances, credit, and account yields, thereby providing a comprehensive view of their financial health.
Jack Henry’s Banno Business solution, which enables community and regional financial institutions to provide modern banking experiences for small-to-medium businesses, is noteworthy.
JKHY is also gaining solid momentum across its Payrailz Fraud Monitor, an AI-based feature that provides real-time fraud detection during payment transactions. The feature supports P2P, bill payments and A2A outbound transfers. It uses AI and machine learning to detect and weigh multiple fraud attributes, generate actionable scores and mitigate payment fraud, including account takeover, by continuously learning and detecting emerging patterns.
A strong portfolio, coupled with an expanding clientele, is expected to continue driving Jack Henry’s financial performance in the upcoming period.
For fiscal 2024, Jack Henry expects GAAP revenues in the band of $2.215-$2.228 billion. The Zacks Consensus Estimate for the same is pegged at $2.22 billion, implying year-over-year growth of 6.8%.
JKHY raised the guidance for fiscal 2024 earnings from $5.09-$5.13 to $5.15-$5.19 per share. The consensus mark for 2024 earnings is pegged at $5.19 per share, indicating a 3.4% rise from the year-ago figure. The figure has been revised 0.4% upward in the past 30 days.
Image: Bigstock
Jack Henry (JKHY) Boosts Clientele With FFBKC Partnership
Jack Henry’s (JKHY - Free Report) shares have gained 1.1% in the year-to-date period against the industry’s 5.1% decline. The company is continuously benefiting from an expanding clientele on the back of its robust banking solutions.
Recently, First Federal Bank of Kansas City (“FFBKC”) selected Jack Henry to expand its services to small businesses, particularly in real estate.
To support these businesses, the bank will use Jack Henry's hosted core processing solution, Banno Digital Platform, and LoanVantage, along with enterprise solutions like treasury and workflow management tools to make modern service components available in the public cloud, allowing it to innovate faster and meet customer needs.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Customer Base
The latest move by FFBKC has added strength to Jack Henry’s customer base.
This apart, Jack Henry recently expanded its clientele with the addition of the Forest Park Bank. Forest Park Bank will utilize Jack Henry’s Banno Digital Platform, contactless cards and digital wallets to meet the needs of younger customers.
The Oklahoma City, OK-based Quail Creek Bank also selected Jack Henry to deliver enhanced experience to small businesses and individual clients. Per the terms, Quail Creek Bank will leverage Jack Henry’s banking solutions, including real-time payments, digital account opening and electronic document delivery.
The Copper State Credit Union selected Jack Henry to integrate the latter's single technology platform into its operations. The credit union will leverage JKHY’s open infrastructure to create a new digital banking platform that will provide a comprehensive view of members' finances, enable instant payments, manage credit scores and protect their data.
Jack Henry also partnered with First State Bank, enabling the latter to leverage its modern, customizable core processing solution and the Banno Digital Platform to automate processes and enhance efficiencies for retail and commercial customers.
Portfolio Strength: Key Catalyst
Jack Henry’s strong customer momentum is driven by its portfolio strength. Hence, it is making concerted efforts to bolster its portfolio further.
It recently introduced a new Daily Dashboard for its cloud platform, Financial Performance Suite. The Daily Dashboard provides financial and performance insights for financial institutions to help analyze loan and deposit balances, credit, and account yields, thereby providing a comprehensive view of their financial health.
Jack Henry’s Banno Business solution, which enables community and regional financial institutions to provide modern banking experiences for small-to-medium businesses, is noteworthy.
JKHY is also gaining solid momentum across its Payrailz Fraud Monitor, an AI-based feature that provides real-time fraud detection during payment transactions. The feature supports P2P, bill payments and A2A outbound transfers. It uses AI and machine learning to detect and weigh multiple fraud attributes, generate actionable scores and mitigate payment fraud, including account takeover, by continuously learning and detecting emerging patterns.
A strong portfolio, coupled with an expanding clientele, is expected to continue driving Jack Henry’s financial performance in the upcoming period.
For fiscal 2024, Jack Henry expects GAAP revenues in the band of $2.215-$2.228 billion. The Zacks Consensus Estimate for the same is pegged at $2.22 billion, implying year-over-year growth of 6.8%.
JKHY raised the guidance for fiscal 2024 earnings from $5.09-$5.13 to $5.15-$5.19 per share. The consensus mark for 2024 earnings is pegged at $5.19 per share, indicating a 3.4% rise from the year-ago figure. The figure has been revised 0.4% upward in the past 30 days.
Zacks Rank & Other Stocks to Consider
JKHY currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Analog Devices (ADI - Free Report) , Garmin (GRMN - Free Report) and Badger Meter (BMI - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices’ shares have gained 18.7% in the year-to-date period. The long-term earnings growth rate for ADI is expected to be 9.50%.
Garmin’s shares have gained 31% in the year-to-date period. The long-term earnings growth rate for GRMN is projected at 8.04%.
Shares of Badger Meter have gained 25.2% in the year-to-date period. The long-term earnings growth rate for BMI is anticipated to be 16.73%.