Jack Henry & Associates
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Jack Henry & Associates met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share grew.
Gross margins dropped, operating margins increased, net margins increased.
Jack Henry & Associates booked revenue of $255.9 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $256.2 million. Sales were 5.4% higher than the prior-year quarter's $242.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.44. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.44 for Q2 were 4.8% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.0%, 40 basis points worse than the prior-year quarter. Operating margin was 23.8%, 110 basis points better than the prior-year quarter. Net margin was 15.1%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $256.1 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $1.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 255 rating the stock outperform, and six members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Jack Henry & Associates a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack Henry & Associates is hold, with an average price target of $33.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.