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Jack Henry (JKHY) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Jack Henry & Associates, Inc. (JKHY - Free Report) posted fourth-quarter fiscal 2024 earnings of $1.38 per share, beating the Zacks Consensus Estimate by 6.1%. The bottom line increased 3% from the year-ago quarter’s reported figure.
Revenues rose 4.7% from the year-ago quarter’s reading to $559.9 million. The figure missed the Zacks Consensus Estimate of $563.4 million.
JKHY’s non-GAAP revenues were $553.2 million, up 6.4% from the year-ago quarter’s tally.
Higher processing revenues drove top-line growth.
Strong momentum across the Core, Payments, Complementary and Corporate segments contributed well.
Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise
Services & Support: JKHY generated revenues of $316.7 million from the category (56.6% of revenues). The figure rose 1.5% from the year-ago quarter’s levels, owing to an 11.5% rise in data processing and hosting fees.
Processing: The category yielded $243.2 million in revenues (43.4% of revenues), up 9.2% from the year-ago quarter’s actual. The upside can be attributed to a 14% increase in Jack Henry's digital and transaction revenues and 8.3% growth in card revenues. Strength in payment processing and remote capture also contributed well.
Segments in Detail
Core: Revenues were $172.04 million (30.7% of the total revenues), rising 3% from the year-ago quarter’s figure. However, the metric lagged the Zacks Consensus Estimate of $177 million.
Payments: Revenues summed up to $212.6 (38% of the total revenues), increasing 7.7% from the year-ago quarter’s figure. The metric surpassed the consensus mark of $207 million.
Complementary: Revenues were $155.1 million (27.7% of the total revenues), up 2.7% from the year-earlier quarter’s levels. The figure missed the Zacks Consensus Estimate of $158 million.
Corporate & Other: Revenues grossed $20.1 million (3.6% of the total revenues) and rose 5.8% from the prior-year quarter. The figure surpassed the consensus mark of $19.96 million.
Operating Details
In fourth-quarter fiscal 2024, total operating expenses were $434.3 million, up 5.8% from the prior-year quarter’s figure.
As a percentage of revenues, the figure expanded 80 basis points (bps) from the year-ago quarter’s tally to 77.6%
The operating margin was 22.4%, contracting 80 bps from the year-ago quarter’s tally.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $38.3 million compared with $27.3 million as of Mar 31, 2024.
Trade receivables were $333.03 million in the reported quarter, up from $263.4 million registered in the previous quarter.
The current and long-term debt was $150 million at the end of fourth-quarter fiscal 2024 compared with $250 million at the end of the fiscal third quarter.
Guidance
For the fiscal 2025, Jack Henry expects GAAP revenues of $2.369-$2.391 billion. The Zacks Consensus Estimate for revenues is pegged at $2.37 billion.
GAAP operating margin is anticipated to be between 23% and 23.2%.
It expects non-GAAP revenues to be between $2.353 billion and 2.375 billion.
Management expects GAAP earnings per share within the range of $5.78-$5.87. The Zacks Consensus Estimate for earnings is pegged at $5.70 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #3 (Hold).
JKHY’s shares have inched up 1.3% year to date compared with the Zacks Computer & Technology sector’s increase of 22.5%.
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Jack Henry (JKHY) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Jack Henry & Associates, Inc. (JKHY - Free Report) posted fourth-quarter fiscal 2024 earnings of $1.38 per share, beating the Zacks Consensus Estimate by 6.1%. The bottom line increased 3% from the year-ago quarter’s reported figure.
Revenues rose 4.7% from the year-ago quarter’s reading to $559.9 million. The figure missed the Zacks Consensus Estimate of $563.4 million.
JKHY’s non-GAAP revenues were $553.2 million, up 6.4% from the year-ago quarter’s tally.
Higher processing revenues drove top-line growth.
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: JKHY generated revenues of $316.7 million from the category (56.6% of revenues). The figure rose 1.5% from the year-ago quarter’s levels, owing to an 11.5% rise in data processing and hosting fees.
Processing: The category yielded $243.2 million in revenues (43.4% of revenues), up 9.2% from the year-ago quarter’s actual. The upside can be attributed to a 14% increase in Jack Henry's digital and transaction revenues and 8.3% growth in card revenues. Strength in payment processing and remote capture also contributed well.
Segments in Detail
Core: Revenues were $172.04 million (30.7% of the total revenues), rising 3% from the year-ago quarter’s figure. However, the metric lagged the Zacks Consensus Estimate of $177 million.
Payments: Revenues summed up to $212.6 (38% of the total revenues), increasing 7.7% from the year-ago quarter’s figure. The metric surpassed the consensus mark of $207 million.
Complementary: Revenues were $155.1 million (27.7% of the total revenues), up 2.7% from the year-earlier quarter’s levels. The figure missed the Zacks Consensus Estimate of $158 million.
Corporate & Other: Revenues grossed $20.1 million (3.6% of the total revenues) and rose 5.8% from the prior-year quarter. The figure surpassed the consensus mark of $19.96 million.
Operating Details
In fourth-quarter fiscal 2024, total operating expenses were $434.3 million, up 5.8% from the prior-year quarter’s figure.
As a percentage of revenues, the figure expanded 80 basis points (bps) from the year-ago quarter’s tally to 77.6%
The operating margin was 22.4%, contracting 80 bps from the year-ago quarter’s tally.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $38.3 million compared with $27.3 million as of Mar 31, 2024.
Trade receivables were $333.03 million in the reported quarter, up from $263.4 million registered in the previous quarter.
The current and long-term debt was $150 million at the end of fourth-quarter fiscal 2024 compared with $250 million at the end of the fiscal third quarter.
Guidance
For the fiscal 2025, Jack Henry expects GAAP revenues of $2.369-$2.391 billion. The Zacks Consensus Estimate for revenues is pegged at $2.37 billion.
GAAP operating margin is anticipated to be between 23% and 23.2%.
It expects non-GAAP revenues to be between $2.353 billion and 2.375 billion.
Management expects GAAP earnings per share within the range of $5.78-$5.87. The Zacks Consensus Estimate for earnings is pegged at $5.70 per share.
Zacks Rank & Stocks to Consider
Jack Henry currently carries a Zacks Rank #3 (Hold).
JKHY’s shares have inched up 1.3% year to date compared with the Zacks Computer & Technology sector’s increase of 22.5%.
Some better-ranked stocks from the broader sector are Nutanix (NTNX - Free Report) , NVIDIA (NVDA - Free Report) and Dell Technologies (DELL - Free Report) . Nutanix sports a Zacks Rank #1 (Strong Buy), while NVIDIA and Dell Technologies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutanix’s shares have moved up 11.1% year to date. NTNX is set to report its fourth-quarter fiscal 2024 results on Aug 28.
NVIDIA’s shares have surged 157% year to date. NVDA is set to report its second-quarter fiscal 2025 results on Aug 28.
Dell Technologies’ shares have rallied 44.8% year to date. DELL is set to report its second-quarter fiscal 2025 results on Aug 25.