Wolfe Research maintains Peerperform rating on Jack Henry & Associates, Inc. (NASDAQ:JKHY) after fiscal Q4 earnings report, showing slight EPS beat and improved free cash flow. However, revenue growth decelerated, causing shares to drop by 3-4% in after-market trading. Investors seek assurance of achieving projected 7-8% growth in FY25 amid softer trends in some business areas.
Anticipation for updates on Banno platform and Core business trends. Company's ability to meet growth expectations in FY25 crucial for investors. Recent earnings report saw EPS beat but revenue miss, with services revenue up 1.5% and processing revenue rising by 9.2% year-over-year.
Looking ahead to FY25, Jack Henry forecasts EPS between $5.78 and $5.87 and revenue in the range of $2.35 billion to $2.37 billion. The company continues to show strong financial performance with a market cap of $12.07 billion and a consistent ability to generate profit.
InvestingPro Insights
Jack Henry & Associates, Inc. (NASDAQ:JKHY) has a robust market cap of $12.07 billion, showing consistent profit generation. The company's commitment to shareholder returns is evident from its 35 consecutive years of raising dividends, with a dividend yield of 1.33%. Trading at a high P/E ratio of 32.02, Jack Henry's strong cash flows indicate financial stability.
Investors should monitor the company's price performance relative to its 52-week high and fair value estimates. Analysts set fair value at $181, while InvestingPro Fair Value stands at $170.16. Next earnings date on November 4, 2024, will be critical for assessing Jack Henry's market position and growth trajectory.
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