Golf Clap for Jack Henry & Associates

Jack Henry & Associates (NAS: JKHY) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Jack Henry & Associates met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and GAAP earnings per share grew.

Gross margins dropped, operating margins increased, net margins increased.

Revenue details
Jack Henry & Associates booked revenue of $255.9 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $256.2 million. Sales were 5.4% higher than the prior-year quarter's $242.6 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.44. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.44 for Q2 were 4.8% higher than the prior-year quarter's $0.42 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.0%, 40 basis points worse than the prior-year quarter. Operating margin was 23.8%, 110 basis points better than the prior-year quarter. Net margin was 15.1%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $256.1 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $1.73.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 249 members out of 255 rating the stock outperform, and six members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Jack Henry & Associates a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack Henry & Associates is hold, with an average price target of $33.17.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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