Analyst Estimates: Here's What Brokers Think Of Jack Henry & Associates, Inc. (NASDAQ:JKHY) After Its First-Quarter Report

Simply Wall St.
08 Nov 2024

The quarterly results for Jack Henry & Associates, Inc. (NASDAQ:JKHY) were released last week, making it a good time to revisit its performance. Jack Henry & Associates reported in line with analyst predictions, delivering revenues of US$601m and statutory earnings per share of US$1.63, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Jack Henry & Associates

NasdaqGS:JKHY Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the current consensus from Jack Henry & Associates' 16 analysts is for revenues of US$2.37b in 2025. This would reflect a credible 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.5% to US$5.83. Before this earnings report, the analysts had been forecasting revenues of US$2.37b and earnings per share (EPS) of US$5.82 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$192, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Jack Henry & Associates analyst has a price target of US$212 per share, while the most pessimistic values it at US$175. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.0% per year. So although Jack Henry & Associates is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$192, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Jack Henry & Associates. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Jack Henry & Associates going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Jack Henry & Associates' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10