Jack Henry & Associates Set to Release Q3 Fiscal 2025 Earnings

Jack Henry & Associates, Inc. (JKHY) will report its third-quarter fiscal 2025 earnings after market close on May 5.

Sales and Earnings Estimates

For the fiscal third quarter, the Zacks Consensus Estimate projects sales at $586.14 million. This represents an 8.84% increase from the previous year’s figures.

The consensus forecast for earnings stands at $1.30 per share, suggesting a 9.24% rise compared to the same quarter in the prior year.

Jack Henry has outperformed the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average surprise of 3.1%.

Jack Henry & Associates, Inc. Price and EPS Surprise

Performance summary: Jack Henry & Associates, Inc. price-eps-surprise.

Factors Impacting Earnings

The expected growth in Jack Henry’s fiscal third-quarter results mainly stems from increased momentum in its services and support sectors. The Zacks Consensus Estimate for services and support revenues is $332.5 million, reflecting a 9% year-over-year growth.

Strength in the Core segment is anticipated, driven by the transition from on-premise systems to private cloud solutions, alongside notable growth in public cloud offerings. The consensus estimate for revenue from the Core segment is $181.5 million, suggesting an 8.9% increase from last year.

In addition, robust performances in the Payments segment, particularly through card transaction solutions and the Enterprise Payment Solutions business, are expected to support the company this quarter.

The consensus for Payments revenues is set at $215.8 million, indicating a year-over-year growth of 6.9%.

Furthermore, the diverse range of solutions, including Banno, LoanVantage, and Treasury Management, is likely to contribute positively to the Complementary segment, which has a consensus revenue estimate of $164.9 million, showing 10.5% growth from the previous year.

Nonetheless, ongoing tariff wars, geopolitical tensions, and broader economic pressures may negatively impact JKHY’s results in the upcoming quarter.

What the Model Indicates

According to the Zacks model, a favorable earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically enhances the chances of an earnings surprise. However, this does not apply in Jack Henry’s case.

Currently, Jack Henry maintains a Zacks Rank #3 with an earnings ESP of 0.00%.

Considerations for Investors

For investors looking for better odds of an earnings beat, stocks like HealthStream (HSTM) show promise with an earnings ESP of +2.13% and a Zacks Rank #2. HSTM is also reporting first-quarter 2025 results on May 5, with consensus earnings pegged at 16 cents per share.

Advanced Micro Devices (AMD) is scheduled to announce its first-quarter fiscal 2025 results on May 6. The consensus EPS estimate is 93 cents, marking a 30% increase year-over-year, despite shares declining 33.9% in the past year.

Lemonade (LMND) is expected to report a loss of 94 cents per share on May 6, with its earnings ESP at +3.40%. LMND shares have surged 60.7% over the past year.

Conclusion

Jack Henry & Associates is poised to report its fiscal Q3 results as anticipated growth factors come into play. However, market challenges may temper these expectations. Investors should watch related stocks with favorable combinations of earnings metrics for potential opportunities.

This article is compiled from various sources and expresses the author’s insights.

The views and opinions expressed herein do not necessarily reflect those of Nasdaq, Inc.