Financial technology provider Jack Henry & Associates (NASDAQ:JKHY) will be reporting results this Tuesday after market hours. Here's what you need to know.
Jack Henry beat analysts' revenue expectations last quarter, reporting revenues of $633.1 million, up 6.6% year on year. It was a strong quarter for the company, with a beat of analysts' EPS estimates and full-year EPS guidance slightly topping analysts' expectations.
Is Jack Henry a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members .
This quarter, the market is expecting Jack Henry's revenue to grow 5.8% year on year, slowing from the 8.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Jack Henry has missed Wall Street's revenue estimates multiple times over the last two years.
Looking at Jack Henry's peers in the financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Donnelley Financial Solutions delivered year-on-year revenue growth of 5.5%, beating analysts' expectations by 2.8%, and WEX reported revenues up 12.8%, topping estimates by 3.2%. Donnelley Financial Solutions traded up 25.9% following the results while WEX was down 3.3%.
Read our full analysis of Donnelley Financial Solutions's results here and WEX's results here .
There has been positive sentiment among investors in the financial services segment, with share prices up 3% on average over the last month. Jack Henry is up 11.2% during the same time and is heading into earnings with an average analyst price target of $188.11 (compared to the current share price of $161.40).
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