Financial technology provider Jack Henry & Associates (NASDAQ:JKHY) will be reporting results this Tuesday afternoon. Here’s what to look for.
Jack Henry beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $615.4 million, up 9.9% year on year. It was a mixed quarter for the company.
This quarter, analysts are expecting Jack Henry’s revenue to grow 5.8% year on year to $635.9 million, in line with the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Jack Henry has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Jack Henry’s peers in the financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fiserv posted flat year-on-year revenue, missing analysts’ expectations by 7.6%, and Donnelley Financial Solutions reported a revenue decline of 2.3%, topping estimates by 3.3%. Fiserv traded down 48.4% following the results while Donnelley Financial Solutions was also down 11.7%.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the financial services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Jack Henry’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $177 (compared to the current share price of $148.94).
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