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

It's been a good week for Jack Henry & Associates, Inc. (NASDAQ:JKHY) shareholders, because the company has just released its latest annual results, and the shares gained 2.5% to US$163. Jack Henry & Associates reported US$2.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$6.24 beat expectations, being 2.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Jack Henry & Associates from 14 analysts is for revenues of US$2.50b in 2026. If met, it would imply a modest 5.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 2.6% to US$6.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.52b and earnings per share (EPS) of US$6.42 in 2026. 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.

Check out our latest analysis for Jack Henry & Associates

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$185. 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$206 per share, while the most pessimistic values it at US$173. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 pretty clear that there is an expectation that Jack Henry & Associates' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% annually. Factoring in the forecast slowdown in growth, it looks like Jack Henry & Associates is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$185, with the latest estimates not enough to have an impact on their price targets.

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 2028, and you can see them free on our platform here.

You can also view our analysis of Jack Henry & Associates' balance sheet, and whether we think Jack Henry & Associates is carrying too much debt, for free on our 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.