Jack Henry & Associates Q4 Profit Rises - Update

(RTTNews) - Payment processor Jack Henry & Associates Inc. (JKHY), Tuesday reported an increase in profit for the fourth quarter, driven primarily by higher support and service revenues, as well as better margins. Earnings for the quarter were in line with Wall Street expectations, but revenues fell short of estimates.

Monett, Missouri-based Jack Henry's fourth-quarter profit rose to $50.6 million or $0.60 per share from $47.7 million or $0.55 per share last year. On average, eight analysts expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Jack Henry, which provides ATM and credit card transaction processing, bill payment and other financial services, said revenues for the quarter grew 4 percent to $310.9 million from $298.1 million last year. Analysts polled by Thomson Reuters had a consensus revenue estimate of $318.33 million for the quarter.

Support and service revenues, which contributes majority of revenues, climbed 5 percent to $283.6 million, while license revenues improved 8 percent to $13.1 million from last year. Hardware revenues dropped 12 percent to $14.2 million from last year.

Gross margin, or gross profit as a percent of sales, improved to 43 percent from 42 percent last year.

JKHY closed Tuesday's trading at $57.67, down $0.12 or 0.20%, on the Nasdaq. The stock further dropped $0.01 or 0.02% in after-hours trade.