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Jack Henry (JKHY) to Report Q2 Earnings: What's in Store?

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·4 min read
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Jack Henry & Associates, Inc. JKHY is scheduled to report second-quarter fiscal 2021 results on Feb 8.

For the fiscal second quarter, the Zacks Consensus Estimate for sales is pegged at $431.9 million, indicating growth of 3.1% from the prior-year quarter’s reported figure.

Further, the consensus mark for earnings per share stands at 88 cents, which suggests a decline of 6.4% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.48%.

Jack Henry & Associates, Inc. Price and EPS Surprise

Jack Henry & Associates, Inc. Price and EPS Surprise
Jack Henry & Associates, Inc. Price and EPS Surprise

Jack Henry & Associates, Inc. price-eps-surprise | Jack Henry & Associates, Inc. Quote

Key Factors to Note

The impacts of Jack Henry’s solid momentum across Core, Payments and Complementary segments are expected to get reflected in the fiscal second-quarter results.

Further, increasing demand for Jack Henry’s Banno Digital Platform is expected to have benefited the company’s performance in the quarter under review.

Also, robust technology solutions, including core solutions, are anticipated to have sustained momentum across core customer contracts, which, in turn, is likely to have driven the core segment’s performance in the quarter to be reported.

Furthermore, strong debit and credit processing solutions of the company are anticipated to have bolstered its debit and credit clientele in the fiscal second quarter. This, in turn, is expected to have benefited the payment segment’s fiscal second-quarter performance.

Moreover, the growing adoption of new card-processing solutions is likely to have favored the segment.

Additionally, the new cloud-based digital banking system — JHA BankAnywhere— is expected to have helped the company in gaining traction across digital banks in the to-be-reported quarter.

Moreover, Jack Henry’s outsourcing and cloud services are anticipated to have acted as a key catalyst in the quarter under review. Also, the rising migration rate of the customers to the company’s private cloud environment is likely to have remained a tailwind.

However, rising headcounts and personnel costs are expected to have weighed on margin expansion in the to-be-reported quarter.

Also, challenges due to the ongoing coronavirus pandemic are anticipated tohave remained concerning inthe quarter under discussion.

Additionally, sluggishness in the Corporate segment is likely to get reflected in the company’s fiscal second-quarter results.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Jack Henry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jack Henry has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold), currently.

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat this quarter:

Vishay Intertechnology, Inc. VSH currently has an Earnings ESP of +4.82% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CrowdStrike Holdings Inc. CRWD presently has an Earnings ESP of +57.75% and a Zacks Rank of 2.

CDW Corporation CDW currently has an Earnings ESP of +6.74% and a Zacks Rank of 2.

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