Community banking and credit union software provider Jack Henry & Associates is set to release its fiscal fourth-quarter earnings after the market close on Tuesday, with investors focusing on deconversion fees that may exceed expectations.
Analysts project adjusted earnings per share of $1.44 on revenue of $629.2 million for the quarter ended June 30, a sequential decline from the prior quarter’s $1.71 EPS and $636.25 million in revenue. In May, the company reported actual revenue of $636.25 million, beating the $616.91 million consensus forecast by nearly 18%. Deconversion fees, generated when clients terminate contracts following acquisitions by other financial institutions, are expected to total $9.3 million in the quarter. This figure substantially exceeds the $3.5 million forecast by one analyst and is part of a full-year fiscal 2026 projection of $42.8 million in deconversion revenue.
The company’s stock, trading at $149.87, remains more than 22% below its 52-week high of $193.39. The forward price-to-earnings ratio stands at 23.1 times, while the trailing P/E is 20.5. Revenue growth over the last twelve months reached 8.4%, with diluted EPS up nearly 22%.
Wall Street sentiment remains broadly positive, with 13 of 17 analysts rating the stock a buy. The consensus price target is $186.67, implying a 24.6% upside potential. DA Davidson maintained its buy rating and $198 price target on August 12, while Barclays initiated coverage with a buy rating in July.
Jack Henry & Associates will host an earnings call at 8:45 a.m. Eastern on Wednesday, August 19, following Tuesday’s after-hours release.
