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What's in the Offing for Jack Henry's (JKHY) Q2 Earnings?

Jack Henry & Associates, Inc. JKHY is scheduled to report second-quarter fiscal 2023 results on Feb 7.

For the fiscal second quarter, the Zacks Consensus Estimate for sales is pegged at $519.75 million, indicating growth of 5.2% from the prior-year quarter’s reported figure.

Further, the consensus mark for earnings per share is pegged at $1.11, which suggests a decline of 14.6% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 9.3%.

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 second quarter 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.

Notably, the company’s solutions have been attracting core customer contracts.

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

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

The robust debit and credit processing solutions of the company are likely to have bolstered its debit and credit clientele in the fiscal second quarter.

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

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

In the underlined quarter, the company formed partnership with a leading provider of payroll connectivity, Atomic, in order to provide customers with latter’s direct deposit setup and switching solution, named Deposit.

Additionally, Jack Henry was picked by the nation’s largest bankers’ bank, TIB, N.A.

The Maries County Bank selected Jack Henry & Associates to deliver an enhanced digital customer experience.

However, the impacts of rising headcounts and personnel costs are likely to get reflected in the fiscal second-quarter results. Increasing expenses related to the card processing platform are also expected to have impacted the company’s performance in the quarter under review.

Headwinds related to the coronavirus pandemic are expected to have caused other overhangs.

What Our Model Says

Our proven model does not 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, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jack Henry currently has an Earnings ESP of -3.05% and a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Advanced Energy Industries AEIS has an Earnings ESP of +3.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Energy Industries is scheduled to release its fourth-quarter 2022 results on Feb 8. The Zacks Consensus Estimate for AEIS’ earnings is pegged at $1.58 per share, suggesting an increase of 16.18% from the prior-year quarter’s reported figure.

Endava DAVA has an Earnings ESP of +1.47% and a Zacks Rank #2 at present.

ADVERTISEMENT

Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.

Analog Devices ADI has an Earnings ESP of +1.13% and a Zacks Rank #3 at present

Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Analog Devices, Inc. (ADI) : Free Stock Analysis Report

Jack Henry & Associates, Inc. (JKHY) : Free Stock Analysis Report

Advanced Energy Industries, Inc. (AEIS) : Free Stock Analysis Report

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