Company Reports

Jack Henry’s reported results were negatively impacted by conditions in the banking sector, but we think underlying results were solid and show the steady progress the wide-moat company is making. We will maintain our $174 fair value estimate and see shares as about fairly valued.

Jack Henry’s second-quarter fiscal 2024 results largely held steady with the previous quarter. While lower levels of bank mergers and acquisitions are still a modest headwind, the company’s underlying performance is roughly in line with our long-term expectations. We will maintain our $174 fair value estimate for the wide-moat company and see shares as approximately fairly valued at the moment.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed big mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically and remains squarely focused on the bank tech space. Overall, we think this approach has allowed Jack Henry to develop a wide moat, and we think the company will continue to modestly outperform its larger peers.

Jack Henry's fiscal first-quarter results show the company returning to the relatively stable glide path it has been on historically, following a bit of volatility over the past couple of years. We will maintain our $174 per share fair value estimate for the wide-moat company and see shares as modestly undervalued.

Jack Henry’s growth in the fiscal fourth quarter moved more in line with our long-term expectations, and the company finished the year roughly in line with our projections. While Jack Henry has faced some headwinds this year, we continue to be impressed by the relative stability of the wide-moat company’s operations. We will maintain our $174 fair value estimate and see the shares as about fairly valued.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed big mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically and remains focused on the bank tech space. Overall, we think this approach should allow Jack Henry to maintain its wide moat and continue to modestly outperform its larger peers.

Jack Henry & Associates continued to face some headwinds in its fiscal third quarter, but the source of the issue does not concern us, with adjusted results showing the company tracking roughly in line with our long-term expectations. We will maintain our $174 fair value estimate for the wide-moat company, and we see the shares as slightly undervalued.

Jack Henry saw some headwinds in its fiscal second quarter, but given the nature of the issues, we are not overly concerned. We will maintain our $174 per share fair value estimate for the wide-moat company.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed big mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically and remains focused on the bank tech space. Overall, we think this approach should allow Jack Henry to maintain its wide moat and continue to modestly outperform its larger peers.

Jack Henry reported a decent fiscal first quarter, in our view. While revenue growth was solid, the company did see a modest contraction in margins. Nothing in the quarter materially alters our view, and we will maintain our $167 fair value estimate and wide moat rating.

Jack Henry ended its fiscal year on a solid note and enjoyed relatively strong growth this year. The company’s full-year results were roughly in line with our expectations, although earnings per share guidance for fiscal 2023 was a bit below our assumptions, suggesting the margin improvement Jack Henry saw this year might stall in the near term. We will maintain our $167 fair value estimate for the wide-moat company. We see the shares as modestly overvalued and think the market might be willing to pay a bit of a premium at the moment for such a highly resilient company given current macro uncertainties.

Jack Henry reported a strong third quarter, as the increase in deconversion fees continued to boost results. The company remains on track to generate relatively outsized growth for the fiscal year. That said, after adjusting for deconversion fees, growth in the quarter was roughly in line with our long-term expectations. We will maintain our $167 per share fair value estimate and wide moat rating.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed big mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically. Overall, we think this approach should allow Jack Henry to maintain its wide moat and continue to modestly outperform its larger peers.

Jack Henry saw strong growth and margin improvement in the fiscal second quarter, and appears to be hitting its stride as the impact of the pandemic fades. While we think growth this year will come in a bit higher than normal, we believe Jack Henry can continue to take share over time and maintain solid growth. We will maintain our $159 fair value estimate and wide moat rating.

Jack Henry delivered a solid fiscal first quarter. In our view, while some headwinds remain, the results suggest the company is on track to see fully normalized growth in fiscal 2022 and solid margin expansion. However, nothing in the quarter materially altered our long-term view, and we will maintain our $159 fair value estimate and wide moat rating.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed large mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically. Overall, we think this approach should allow Jack Henry to maintain its wide moat and continue to modestly outperform its larger peers.

Jack Henry reported a solid fiscal fourth quarter and finished the year roughly in line with our expectations. We think the company’s ability to maintain modest growth and improve margins this year despite COVID-19-related headwinds speaks to the resilience of the franchise. We will maintain our $154 fair value estimate and wide moat rating.

Jack Henry’s fiscal third-quarter results continue to be weighed down by the impact of the pandemic, but we think the company is nearing a point where growth and margins will improve. We will maintain our $154 fair value estimate and wide moat rating.

Jack Henry remains committed to the idea that slow and steady wins the race. While its larger peers both completed large mergers in 2019 that expanded their operations into new areas, Jack Henry continues to build out its competitive position organically. Overall, we think this approach should allow Jack Henry to maintain its wide moat.

While it has not escaped unscathed, Jack Henry continued to demonstrate its resilience in its fiscal second quarter, in our view. We see the inherent stability of the wide-moat business as one of its key attractions. We will maintain our $149 fair value estimate.