Financial technology provider Jack Henry & Associates (NASDAQ: JKHY) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Jack Henry beat analysts’ revenue expectations last quarter, reporting revenues of $615.9 million, up 7.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Jack Henry a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Jack Henry’s revenue to grow 5.1% year on year, slowing from the 7.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Jack Henry has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Jack Henry’s peers in the payment processing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EVERTEC delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 4.4%, and Shift4 reported revenues up 34%, topping estimates by 4%. EVERTEC traded down 3.8% following the results while Shift4 was also down 22.7%.
Read our full analysis of EVERTEC’s results here and Shift4’s results here.
There has been positive sentiment among investors in the payment processing segment, with share prices up 5.8% 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 $186.67 (compared to the current share price of $153.35).
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