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Jack Henry Posts Q3 Earnings Beat, Narrowly Misses Revenue Consensus

Published 07/05/2024, 21:32
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MONETT, Mo. - Jack Henry & Associates, Inc. (NASDAQ: NASDAQ:JKHY), a prominent provider of financial technology solutions, reported third-quarter earnings that surpassed analyst expectations, although revenue fell slightly short of forecasts.

The company announced a third-quarter adjusted EPS of $1.19, which was $0.02 higher than the analyst estimate of $1.17. However, the revenue for the quarter was $538.56 million, marginally below the consensus estimate of $541.99 million.

The reported third-quarter GAAP revenue marked a 5.9% increase from the same quarter last year, signaling steady growth for the company. Non-GAAP adjusted revenue also saw a 7.0% rise compared to the previous fiscal year's quarter. The company's GAAP EPS improved from $1.12 to $1.19 per diluted share year-over-year (YoY), reflecting a 6.9% increase.

Looking ahead, Jack Henry provided full-year fiscal 2024 guidance, projecting an EPS range of $5.15 to $5.19, aligning with the lower end of the analyst consensus of $5.19. The company's revenue guidance for the year is set between $2.215 billion and $2.228 billion, which is slightly below the consensus forecast of $2.22 billion.

David Foss, Jack Henry's Board Chair and CEO, expressed satisfaction with the quarter's performance, attributing the success to robust sales growth and a strong sales pipeline. He emphasized the company's commitment to delivering modern technology to support financial institutions in enhancing their connections with customers.

Mimi Carsley, CFO and Treasurer of Jack Henry, highlighted the company's disciplined approach to cost control, which contributed to the solid non-GAAP revenue growth of over 7% and non-GAAP operating income growth of over 8%.

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Despite the positive earnings outcome, the company's stock movement in response to the earnings release was not provided, leaving investor reaction to the quarter's results undetermined at the time of reporting.

Jack Henry continues to focus on its strategy of providing innovative solutions and cloud-native technology modernization to serve a broad client base, positioning itself for sustained growth in the financial technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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