Technology and payment processing service provider Jack Henry & Associates (JKHY) has reported solid financial results for the fiscal fourth quarter ended June 30. The Missouri-based company primarily caters to the financial services industry.
Jack Henry reported earnings per share (EPS) of $1.04, beating the Street’s estimate of $0.92 per share. The company had reported EPS of $0.80 in the year-ago period. Quarterly revenues increased 10% year-over-year to $450.3 million, exceeding analysts’ expectations of $444.85 million.
Services and Support revenue grew 6% year-over-year to $261.7 million due to higher software usage fees and a 9.1% rise in data processing and hosting fees. Processing revenue surged 15% to $188.6 million driven by 22.3% growth in card processing.
The President and CEO of Jack Henry, David Foss, said, “As we begin the new Fiscal Year, our sales pipeline remains strong, and we see significant opportunities to continue growing new and existing customer relationships through the successful execution of Jack Henry’s client strategies in digital, lending, payments, and open banking. We are optimistic about the strength of our technology solutions and the ability of our teams to deliver outstanding service in a market that is widely expected to increase technology and digital investments in a recovering economy.”
For Fiscal Year 2022, the company expects to report revenue of around $1.91 billion and EPS between $4.53 and $4.60. (See Jack Henry stock chart on TipRanks)
Last month, Robert W. Baird analyst David Koning maintained a Hold rating on the stock with a price target of $180 (0.8% upside potential). The analyst expects Jack Henry to report EPS of $0.95 in the first quarter of Fiscal Year 2022.
Overall, the stock has a Hold consensus rating based on 1 Hold. The average Jack Henry & Associates price target of $180 implies that the stock is fully valued at current levels. Shares of the company have gained nearly 17% over the past six months.
According to TipRanks’ Smart Score rating system, Jack Henry scores a 5 out of 10, suggesting that the stock is likely to perform in line with market averages.
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