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Investing.com - Keefe, Bruyette & Woods has reiterated its Market Perform rating and $183.00 price target on Jack Henry (NASDAQ:JKHY) following the company’s fourth-quarter earnings beat.
The financial services technology provider reported earnings per share that exceeded KBW estimates by 20 cents, with 9 cents of the 14-cent top-line beat driven by higher deconversion fees, according to KBW analyst Vasundhara Govi. The company maintains strong fundamentals with a 42.06% gross margin and 22% return on equity. InvestingPro subscribers can access 8 additional key insights about JKHY’s financial health and growth prospects.
Jack Henry delivered strong quarterly results with non-GAAP revenues and operating margins surpassing analyst expectations, while the company’s fiscal year 2026 revenue guidance came in slightly below Street estimates at the midpoint for both GAAP and non-GAAP measures.
Management cited headwinds from recent bank mergers and acquisitions, as well as the impact of last year’s renewals, as factors affecting short-term growth rates, though they noted the pace of new core wins remains strong.
The outlook suggests quarterly performance variability, with the first quarter expected to be the strongest and weaker trends anticipated in the second half of the fiscal year, which KBW indicated would likely prompt questions during the upcoming earnings call.
In other recent news, Jack Henry & Associates reported strong fourth-quarter earnings that surpassed analyst expectations. The company achieved adjusted earnings per share of $1.75, significantly exceeding the consensus estimate of $1.55. Revenue for the quarter increased by 9.9% year-over-year to $615.37 million, surpassing the expected $601.33 million. On a non-GAAP basis, adjusted revenue rose by 7.5% to $594.88 million. DA Davidson reiterated its Buy rating for Jack Henry, setting a price target of $212.00, following the favorable earnings results. The financial technology provider’s performance modestly exceeded DA Davidson’s forecasts on both GAAP and non-GAAP bases. These developments highlight the company’s robust growth across all business segments.
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