JKHY Q1 Earnings Beat Estimates, Shares Rise on Strong FY25 View

Jack Henry & Associates JKHY reported first-quarter fiscal 2025 GAAP earnings of $1.63 per share, beating the Zacks Consensus Estimate by 1.24%. The figure increased 18.1% year over year.JKHY’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 5.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.JKHY’s revenues of $601 million came in line with the Zacks Consensus Estimate. The figure increased 5.2% year over year.After adjusting for deconversion revenues of $3.7 million, non-GAAP revenues were $597.3 million, up 5.3% year over year. Adjusted earnings were $1.59 per share, up 4.7% year over year.Shares of Jack Henry & Associates were up 2.95% in pre-market trading. The impressive performance of JKHY’s top and bottom lines in the fiscal first quarter, along with a strong fiscal 2025 guidance, is likely to positively impact the stock’s movement in the near term. However, on a year-to-date basis, shares of JKHY have risen 13.6%, underperforming the Zacks Electronics - Miscellaneous Services industry’s return of 14.3%.JKHY’s Q1 Fiscal 2025 DetailsJack Henry & Associates’ top-line growth was driven by a solid performance of its Processing revenues backed by a modest rise in its Services and support revenues. Strong momentum across segments (Core, Payments, Complementary and Corporate) contributed well.Revenues from Services and Support (59.3% of total revenues) were $356.7 million, up 4.2% year over year. The figure surpassed the consensus mark of $355 million.First-quarter fiscal 2025 revenues from Processing (40.7% of total revenues) were $244.3 million, up 6.6% year over year. The figure missed the consensus mark of $248 million. Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. QuoteRevenues from Core segments (32.5% of total revenues) in the first quarter of fiscal 2025 were $194.3 million, up 5.2% year over year. Revenues from Payments (35.2% of total revenues) were $210 million, which rose 5.9% year over year.Revenues from Complementary (28.7% of total revenues) were $171.2 million, up 7.1% year over year.Revenues from Corporate & Other (3.6% of total revenues) were $21.7 million, down 10.3% year over year.JKHY’s fiscal first-quarter adjusted EBITDA was $198.3 million, up 1.9% year over year. The adjusted EBITDA margin contracted 110 basis points (bps) on a year-over-year basis to 33.2%.Adjusted operating income increased 1.6% year over year to $147.8 million. Adjusted operating margin contracted 90 bps year over year to 24.7%. JKHY’s Balance Sheet Remains StrongAs of Sept. 30, 2024, JKHY’s cash and cash equivalents were $43 million compared with $38.3 million as of June 30.Current and long-term debt was $140 million as of Sept. 30, lower than $150 million as of June 30.Net cash from operating activities was $116.9 million, while free cash flow was $59.16 million.JKHY Offers Positive Fiscal 2025 GuidanceFor fiscal 2025, Jack Henry & Associates expects GAAP revenues in the $2.369-$2.391 billion range. JKHY expects non-GAAP revenues to be in the band of $2.353-2.375 billion.The Zacks Consensus Estimate for revenues is pegged at $2.37 billion, suggesting a year-over-year rise of 7.13%.GAAP operating margin is anticipated between 23% and 23.2%. Adjusted operating margin is expected between 22.7% and 22.8%.Management expects GAAP earnings per share in the range of $5.78-$5.87. The Zacks Consensus Estimate for earnings is pegged at $5.82 per share, indicating a year-over-year increase of 11.28%.Zacks Rank & Other Stocks to ConsiderCurrently, JKHY carries a Zacks Rank #2 (Buy) at present. Shopify SHOP, Blackline BL and CyberArk CYBR Software are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. SHOP, BL and CYBR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.SHOP shares have appreciated 2.2% year to date. Shopify is set to report third-quarter 2024 results on Nov. 12.BL shares have lost 10.3% year to date. Blackline is slated to report third-quarter 2024 results on Nov. 7.CYBR shares have jumped 27.9% year to date. CyberArk Software is set to report third-quarter 2024 results on Nov. 13.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jack Henry & Associates, Inc. (JKHY): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Shopify Inc. 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