JKHY Q2 Earnings Beat: Will 2025 Outlook Drag the Stock Down?

Jack Henry & Associates JKHY reported second-quarter fiscal 2025 GAAP earnings of $1.34 per share, beating the Zacks Consensus Estimate by 2.3%. The figure increased 6.3% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.JKHY’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 4.25%.Jack Henry & Associates’ revenues of $573.85 million missed the Zacks Consensus Estimate by 0.4%. The figure increased 5.2% year over year.After adjusting for deconversion revenues of $69,000, non-GAAP revenues were $573.78 million, up 6.1% year over year. Adjusted earnings were $1.35 per share, up 10.4% year over year.Jack Henry & Associates’ modest second-quarter performance and unchanged fiscal 2025 guidance from the previous quarter are unlikely to significantly boost JKHY’s stock price. Shares of JKHY have risen 6.6%, underperforming the Zacks Computers - IT Services industry’s return of 9.5%.Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. QuoteJKHY’s Q2 2025 DetailsJack Henry & Associates’ top-line growth was driven by modest growth across its Core, Payments, Complementary and Corporate & Other segments. Revenues from Services and Support (56.3% of total revenues) were $323.03 million, up 3.5% year over year. The figure missed the consensus mark of $329 million.Second-quarter fiscal 2025 revenues from Processing (43.7% of total revenues) were $250.8 million, up 7.3% year over year. The figure marginally surpassed the consensus mark of $250.2 million. Revenues from Core segments (30.2% of total revenues) in the second quarter of fiscal 2025 were $173.2 million, up 4.6% year over year.Revenues from Payments (37.4% of total revenues) were $214.8 million, which rose 5.4% year over year. Revenues from Complementary (28% of total revenues) were $160.9 million, up 5.6% year over year.Revenues from Corporate & Other (4.3% of total revenues) were $24.9 million, up 4.7% year over year. JKHY’s fiscal second-quarter adjusted EBITDA was $175.4 million, up 6.3% year over year. The adjusted EBITDA margin expanded 40 basis points (bps) on a year-over-year basis to 30.6%.Adjusted operating income increased 7.3% year over year to $123 million. Adjusted operating margin contracted 40 bps year over year to 21.4%.JKHY’s Balance Sheet Remains StrongAs of Dec. 31, 2024, JKHY’s cash and cash equivalents were $25.6 million compared with $43 million as of Sept. 30.Current and long-term debt was $150 million as of Dec. 30, higher than $140 million as of Sept. 30.Net cash from operating activities was $206.5 million, while free cash flow was $87.7 million in the six-month ended Dec. 31.JKHY 2025 GuidanceFor fiscal 2025, Jack Henry & Associates has kept its GAAP revenue expectations unchanged in the $2.369-$2.391 billion range compared to the guidance released in the previous quarter. JKHY still expects non-GAAP revenues 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 7.05%.GAAP operating margin is still 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 $5.81 per share, indicating a year-over-year increase of 11.1%.Zacks Rank and Other Stocks to ConsiderCurrently, JKHY carries a Zacks Rank #2 (Buy).Bill Holdings BILL, Celestica CLS and CrowdStrike CRWD are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. BILL, CLS and CRWD sport Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for BILL’s 2025 earnings has been revised upward by a penny to $1.77 per share over the past 60 days, indicating a 13% year-over-year increase. BILL shares have gained 26.2% in the past year.The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have risen 257.3% in the past year.The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 30 days, indicating a 21% year-over-year increase. CRWD shares have gained 34.6% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Celestica, Inc. (CLS): Free Stock Analysis Report Jack Henry & Associates, Inc. (JKHY): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks