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Earnings Beat: Jack Henry & Associates, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Jack Henry & Associates, Inc. (NASDAQ:JKHY) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$702m. Jack Henry & Associates reported statutory earnings per share (EPS) US$2.28, which was a notable 10% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the 19 analysts covering Jack Henry & Associates are now predicting revenues of US$2.69b in 2027. If met, this would reflect a modest 3.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$7.41, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$2.69b and earnings per share (EPS) of US$7.40 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Jack Henry & Associates
There were no changes to revenue or earnings estimates or the price target of US$188, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Jack Henry & Associates at US$209 per share, while the most bearish prices it at US$158. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Jack Henry & Associates is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Jack Henry & Associates' revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2027 being well below the historical 6.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jack Henry & Associates.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Jack Henry & Associates' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Jack Henry & Associates going out to 2029, and you can see them free on our platform here..
You can also see whether Jack Henry & Associates is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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