Financial technology provider Jack Henry & Associates (NASDAQ: JKHY) will be reporting earnings this Tuesday after market close. Here’s what to expect.
Jack Henry beat analysts’ revenue expectations last quarter, reporting revenues of $611.2 million, up 6.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and .
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 5.7% year on year, slowing from the 7% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Jack Henry has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Jack Henry’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 11.1%, meeting analysts’ expectations, and Euronet Worldwide reported revenues up 10.5%, topping estimates by 4.3%. PROG traded up 24.1% following the results while Euronet Worldwide was down 4.4%.
Read our full analysis of PROG’s results here and Euronet Worldwide’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 8.8% on average over the last month. Jack Henry is down 2.6% during the same time and is heading into earnings with an average analyst price target of $198.07 (compared to the current share price of $154.04).
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