Jack Henry & Associates Earnings Preview

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Jack Henry & Associates (NAS: JKHY) came in right in line with the Street's expectations last quarter, but investors are hoping that it will beat them this time. The company will unveil its latest earnings on Tuesday, Aug. 16. Jack Henry & Associates is a provider of core information-processing solutions for community banks. Its array of products and services includes processing transactions, automating business processes, and managing information.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Jack Henry & Associates, with a unanimous rating hold rating. Analysts don't like Jack Henry & Associates as much as competitor DST Systems overall. Three out of three analysts rate DST Systems a buy, compared with zero of eight for Jack Henry & Associates. Analysts haven't adjusted their rating of Jack Henry & Associates for the past three months.
  • Revenue forecasts: On average, analysts predict $249.6 million in revenue this quarter. That would represent a rise of 9.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.40 per share. Estimates range from $0.38 to $0.41.

What our community says:
CAPS All-Stars are solidly behind the stock, with 100% assigning it an "outperform" rating. The community at large agrees with the All-Stars, with 98% awarding it a rating of "outperform." Fools are keen on Jack Henry & Associates, though the message boards have been quiet lately, with only 72 posts in the past 30 days. Jack Henry & Associates has a bullish CAPS rating of five out of five stars that is about on par with the Fool community's assessment.

Management:
Jack Henry & Associates' profit has risen year over year by an average of 13.4% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

QuarterQ3Q2Q1Q4
Gross Margin39.7%42.4%41.3%41.8%
Operating Margin21%22.7%22.5%21.6%
Net Margin13.8%14.9%13.5%13.2%
One final thing: If you want to keep tabs on Jack Henry & Associates' movements, and for more analysis on the company, make sure you add it to your Watchlist.

At the time this article was published The Motley Fool owns shares of Jack Henry & Associates.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.The Motley Fool owns shares of Jack Henry & Associates.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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