JKHY) After Its Third-Quarter Report
It’s been a good week for Jack Henry & Associates, Inc. (NASDAQ:JKHY) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.0% to US$169. It was a credible result overall, with revenues of US$539m and statutory earnings per share of US$1.19 both in line with analyst estimates, showing that Jack Henry & Associates is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Jack Henry & Associates
Taking into account the latest results, the current consensus from Jack Henry & Associates’ 15 analysts is for revenues of US$2.37b in 2025. This would reflect a solid 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 11% to US$5.75. Before this earnings report, the analysts had been forecasting revenues of US$2.38b and earnings per share (EPS) of US$5.74 in 2025. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$181, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. The most optimistic Jack Henry & Associates analyst has a price target of US$200 per share, while the most pessimistic values it at US$170. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Jack Henry & Associates is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.7% growth on an annualised basis. That is in line with its 7.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it’s pretty clear that Jack Henry & Associates is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it’s tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$181, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for Jack Henry & Associates going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether Jack Henry & Associates’ debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
