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What's in the Offing for Jack Henry's (JKHY) Q3 Earnings?

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·3 min read
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Jack Henry & Associates, Inc. JKHY is scheduled to report third-quarter fiscal 2021 results on May 3.

For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $436.61 million, indicating growth of 1.7% from the prior-year quarter’s reported figure.

Further, the consensus mark for earnings per share stands at 86 cents, which suggests a decline of 10.4% 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 9.78%.

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

Factors at Play

Jack Henry’s results for the fiscal thirdquarter are likely to reflect portfolio strength. The company’s robust core solutions are expected to have driven the top line in the quarter to be reported on the back of the growing adoption rate.

Moreover, the solutions have been attracting new core customer contracts, a trend thatmost likely continued in the quarter under discussion.

Additionally, increasing adoption of Jack Henry Banking solutions is expected to have contributed well to the company’s Core segment’s performance in the fiscal third quarter.

Further, a solid momentum across Payments and Complementary segments is expected to get reflected in the to-be-reported quarterly results.

Moreover, growth across technology solutions and expanding customer relationships are expected to have contributed significantly to the company’s performance in the quarter under review.

Additionally, robust debit and credit processing solutions of the company are likelyto have bolstered its debit and credit clientele inthe fiscal third quarter.

Moreover, Jack Henry’s outsourcing and cloud services are expected to have acted as a key catalyst in the quarter under review. Further, the growing momentum of Banno Digital suite, new card processing solution and treasury management is likely to have driven the company’s performance in the quarter under review.

However, rising headcounts and personnel costs are likely to get reflected in the fiscal third-quarter results. Additionally, sluggishness in theCorporate segment is expected to have impacted the company’s performance in the quarter review.

Also, headwinds related to the ongoing coronavirus pandemic are expected tohave been overhangs.

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 stocks that you may consider, as our proven model shows that thesehave the right combination of elements to post an earnings beat this quarter.

Waters Corporation WAT has an Earnings ESP of +2.94% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK, Inc. AME currently has an Earnings ESP of +0.49% and a Zacks Rank #3.

Square, Inc. SQ currently has an Earnings ESP of +16.14% and a Zacks Rank of 3.

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