Fintech firm Jack Henry's Q1 revenue, EPS rise on cloud, payments demand

Overview

• US financial technology firm's fiscal Q1 GAAP revenue rose 8.8% yr/yr, adjusted revenue up 7.2%

• Fiscal Q1 GAAP EPS grew 15.6% to $2.28

• Company repurchased $71 mln of stock in the quarter

Outlook

• Jack Henry sees full-year GAAP revenue between $2.698 bln and $2.718 bln

• Company expects full-year GAAP EPS between $7.47 and $7.51

• Jack Henry forecasts full-year GAAP operating margin of 24.7% to 24.9%

Result Drivers

• CLOUD AND SOFTWARE GROWTH - Co said hosting revenue rose 11.7% as clients migrated to private cloud, and software usage revenue increased 9.9%

• DIGITAL AND PAYMENTS DEMAND - Co attributed processing revenue growth to higher card, digital, and faster payments volumes

• BUSINESS MODEL LEVERAGE - CFO said margin improvement was helped by revenue growth and leverage in business model

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Jack Henry & Associates Inc is $194.50, about 19% above its November 2 closing price of $163.42

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)