Jack Henry & Associates, Inc. (NASDAQ:JKHY) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

As you might know, Jack Henry & Associates, Inc. (NASDAQ:JKHY) recently reported its quarterly numbers. Results were roughly in line with estimates, with revenues of US$574m and statutory earnings per share of US$1.34. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Jack Henry & Associates

Taking into account the latest results, the most recent consensus for Jack Henry & Associates from 18 analysts is for revenues of US$2.37b in 2025. If met, it would imply a reasonable 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.2% to US$5.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.37b and earnings per share (EPS) of US$5.85 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$190, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Jack Henry & Associates, with the most bullish analyst valuing it at US$212 and the most bearish at US$155 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jack Henry & Associates' past performance and to peers in the same industry. It's clear from the latest estimates that Jack Henry & Associates' rate of growth is expected to accelerate meaningfully, with the forecast 8.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jack Henry & Associates is expected to grow much 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Jack Henry & Associates. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Jack Henry & Associates analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Jack Henry & Associates , and understanding it should be part of your investment process.

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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.