Jack Henry's Q1 revenue and EPS rise on cloud, payments demand
JKHY•Jack Henry's fiscal first-quarter GAAP revenue rose 8.8% year over year and GAAP EPS increased 15.6% to $2.28. The company forecast full-year GAAP revenue of $2.698 billion to $2.718 billion and GAAP EPS of $7.47 to $7.51.
1. Quarterly results
Jack Henry reported fiscal first-quarter GAAP revenue growth of 8.8% year over year, while adjusted revenue rose 7.2%. GAAP EPS increased 15.6% to $2.28, and operating margin was 29.5%. The company repurchased $71 million of stock during the quarter.
2. Growth drivers and outlook
Hosting revenue rose 11.7% as clients migrated to private cloud, and software usage revenue increased 9.9%. Jack Henry attributed processing revenue growth to higher card, digital and faster-payments volumes. For the full year, it expects GAAP revenue of $2.698 billion to $2.718 billion, GAAP EPS of $7.47 to $7.51, and GAAP operating margin of 24.7% to 24.9%.
