Jack Henry & Associates
The 10-second takeaway
For the quarter ended March 31 (Q3), Jack Henry & Associates beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.
Margins grew across the board.
Jack Henry & Associates recorded revenue of $281.5 million. The eight analysts polled by S&P Capital IQ expected a top line of $276.0 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $256.3 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 $0.53. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.53 for Q3 were 26% higher than the prior-year quarter's $0.42 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 40.7%, 40 basis points better than the prior-year quarter. Operating margin was 23.3%, 130 basis points better than the prior-year quarter. Net margin was 16.3%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $286.7 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $2.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 244 members out of 250 rating the stock outperform, and six 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 $41.83.
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