A Look Ahead: Jack Henry & Associates's Earnings Forecast

Jack Henry & Associates JKHY is gearing up to announce its quarterly earnings on Tuesday, 2024-11-05. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Jack Henry & Associates will report an earnings per share (EPS) of $1.61.

The announcement from Jack Henry & Associates is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.06, leading to a 0.06% drop in the share price on the subsequent day.

Here's a look at Jack Henry & Associates's past performance and the resulting price change:

Stock Performance

Shares of Jack Henry & Associates were trading at $183.06 as of November 01. Over the last 52-week period, shares are up 28.3%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Jack Henry & Associates

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Jack Henry & Associates.

The consensus rating for Jack Henry & Associates is Neutral, based on 5 analyst ratings. With an average one-year price target of $189.6, there's a potential 3.57% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of Affirm Holdings, Toast and WEX, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Affirm Holdings, with an average 1-year price target of $48.64, indicating a potential 73.43% downside.
• For Toast, analysts project an Neutral trajectory, with an average 1-year price target of $29.57, indicating a potential 83.85% downside.
• The consensus outlook from analysts is an Neutral trajectory for WEX, with an average 1-year price target of $212.5, indicating a potential 16.08% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Affirm Holdings, Toast and WEX, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Jack Henry & Associates ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the bottom for return on equity.

About Jack Henry & Associates

Jack Henry is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing for us banks and credit unions, with a focus on small and midsize banks. Jack Henry serves almost 1,000 banks and over 700 credit unions.

Financial Insights: Jack Henry & Associates

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Jack Henry & Associates's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 4.73%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Jack Henry & Associates's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 18.05%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Jack Henry & Associates's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 5.58%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Jack Henry & Associates's ROA stands out, surpassing industry averages. With an impressive ROA of 3.55%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Jack Henry & Associates's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Jack Henry & Associates visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.