Jack Henry & Associates Shares Slide After Q4 Results, Weak FY23 Guidance

  • Jack Henry & Associates, Inc. (NASDAQ:JKHY) reported fourth-quarter revenue growth of 8% year-over-year to $477.45 million, missing the consensus of $480.12 million.
  • For Q4, core segment revenue increased 8%, payments segment revenue increased 5%, complementary segment revenue increased 9%, and corporate and other segment revenue increased 22%.
  • EPS was $1.10, beating the consensus of $1.
  • Operating margin expanded by 100 bps to 22%. Adjusted operating margin expanded by 85 bps to 20.9%.
  • Adjusted EBITDA increased by 9.1% Y/Y to $144.53 million, and margin expanded by 30 bps to 30.3%.
  • As of June 30, 2022, cash and cash equivalents totaled $48.8 million. Trade receivables totaled $348.1 million, and the Company had $115 million of borrowings.
  • Jack Henry & Associates repurchased 1.25 million shares of common stock during FY22.
  • JKHY net cash provided by operating activities for FY22 totaled $504.63 million, compared to $462.13 million. Free cash flow was $313.2 9 million.
  • FY23 Guidance: JKHY expects GAAP revenue of $2.08 billion to $2.087 billion and GAAP EPS of $5.05 to $5.09, vs. a consensus of $5.23.
  • It expects Non-GAAP revenue of $2.045 billion to $2.052 billion, vs. a consensus of $2.08 billion.
  • Price Action: JKHY shares are trading lower by 4.19% at $202 during the post-market session on Tuesday.
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