The Jack Henry & Associates, Inc. (NASDAQ:JKHY) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week saw the newest first-quarter earnings release from Jack Henry & Associates, Inc. (NASDAQ:JKHY), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of US$601m and statutory earnings per share of US$1.63 both in line with analyst estimates, showing that Jack Henry & Associates is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Jack Henry & Associates

Taking into account the latest results, the consensus forecast from Jack Henry & Associates' 16 analysts is for revenues of US$2.37b in 2025. This reflects a reasonable 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.5% to US$5.83. In the lead-up to this report, the analysts had been modelling revenues of US$2.37b and earnings per share (EPS) of US$5.82 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$192. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Jack Henry & Associates analyst has a price target of US$212 per share, while the most pessimistic values it at US$175. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against 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 7.5% growth on an annualised basis. That is in line with its 7.0% 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 4.0% 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Jack Henry & Associates analysts - going out to 2027, 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.