Jack Henry & Associates, Inc. JKHY is scheduled to report fiscal fourth-quarter 2020 results on Aug 18.
For the fiscal fourth quarter, the company anticipates revenues between $408 million and $415 million. The Zacks Consensus Estimate for sales is pegged at $410.9 million, indicating growth of 4.41% from the prior-year quarter.
Further, the company expects earnings per share in the range of 77-79 cents for the fiscal fourth quarter. The consensus mark for earnings per share stands at 78 cents, which suggesting a decline of 1.3% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 9.57%.
Jack Henry Associates, Inc. Price and EPS Surprise
Jack Henry Associates, Inc. price-eps-surprise | Jack Henry Associates, Inc. Quote
Factors to Note
Jack Henry’s solid momentum across Core, Payments, Complementary and Corporate segments is expected to get reflected in the fiscal fourth-quarter results.
Further, strength across technology solutions and expanding customer relationships might have contributed significantly to the to-be-reported quarter’s performance.
Robust core solutions may have sustained momentum across core customer contracts, which in turn is likely to have driven the core segment’s performance in the quarter to be reported.
Robustdebit and credit processing solutions of the company are also anticipated to have bolstered its debit and credit clientele during the fiscal fourth quarter. This, in turn, may have benefited the payment segment’s fiscal fourth-quarter performance.
Moreover, growing adoption of new card processing solutions is likely to have favored the segment.
Also, increasing demand for Jack Henry’s Banno Digital Platform might get reflected in the fiscal fourth-quarter results.
Additionally, the new cloud-based digital banking system — JHA BankAnywhere— may have helped the company in gaining traction across digital banks in the to-be-reported quarter.
Moreover, Jack Henry’s outsourcing and cloud services might have acted as a key catalyst during the quarter under review. Also, rising migration rate of the customers to the company’s private cloud environment is likely to have remained a tailwind.
However, continuous declining license revenues owing to customer migration to private cloud are expected to have negatively impacted the fiscal fourth-quarter margins. Further, rising headcounts and personnel costs are likely to get reflected in the to-be-reported quarter’s results.
Also, challenges due to the ongoing coronavirus pandemic might have weighed on the fiscal fourth-quarter performance.
What Our Model Says
Our proven model doesn’t 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Jack Henry has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this time around.
Agilent Technologies, Inc. A has an Earnings ESP of +4.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Home Depot, Inc. HD has an Earnings ESP of +10.73% and a Zacks Rank #3.
Alibaba Group Holding Limited BABA has an Earnings ESP of +7.9% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Jack Henry Associates, Inc. (JKHY) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research