Jack Henry & Associates
The 10-second takeaway
For the quarter ended March 31 (Q3), Jack Henry & Associates met expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share increased.
Margins grew across the board.
Jack Henry & Associates reported revenue of $256.3 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $255.8 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $240.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.42 for Q3 were 11% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.3%, 60 basis points better than the prior-year quarter. Operating margin was 22.0%, 100 basis points better than the prior-year quarter. Net margin was 14.3%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $264.7 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $1.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 254 rating the stock outperform, and five members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Jack Henry & Associates a green thumbs-up, and give it a red thumbs-down.
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 $35.00.
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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. He is the 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 don't 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.