Jack Henry & Associates (JKHY) Receives a Hold from Oppenheimer


Oppenheimer analyst Glenn Greene maintained a Hold rating on Jack Henry & Associates (JKHY) yesterday. The company’s shares closed yesterday at $150.74.

Greene commented:

“JKHY reported strong upside 1QFY19 results with EPS growth of 25% (reflects tax reform benefits) to $1.08, which compared to our/Street $0.93 estimates (pre-ASC 606); upside included ~$0.06 benefit from a lower-than-estimated tax rate. Normalized revenue/EBIT grew ~10%/16% Y/Y in 1Q (i.e., ex. termination fee comparisons, M&A, bonuses linked to tax savings). Organic revenue growth continues to sharply outpace peers’, and aggregate sales again exceeded quota, highlighted by 12 new core customer signings during the quarter (almost all for outsourced arrangements). JKHY generated ~$94M in FCF during 1Q, down ~13% Y/Y, weighed down by high capex but over 110% conversion. We await commentary on the sales/demand environment, revenue drivers, and outlook for FY19. Maintain Perform. Our estimates are under review.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 19.0% and a 77.5% success rate. Greene covers the Technology sector, focusing on stocks such as Fidelity National Info, Total System Services, and Global Payments Inc.

Currently, the analyst consensus on Jack Henry & Associates is a Moderate Buy with an average price target of $164.50.

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Based on Jack Henry & Associates’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $85.28 million. In comparison, last year the company had a net profit of $63.41 million.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock.

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Jack Henry & Associates, Inc. engages in the provision of technology solutions and payment processing services primarily for financial services organizations. It operates through the following segments: Core, Payments, Complementary, and Corporate and Other.

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