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Jack Henry's profit rises on higher demand for fintech products

Published 06/02/2024, 23:32
Updated 06/02/2024, 23:35
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(Reuters) - Fintech firm Jack Henry & Associates on Tuesday raised its full-year profit forecast and reported a rise in second-quarter earnings, helped by steady growth in its processing as well as services and support segments.

Demand for financial technology has remained robust as small and mid-sized institutions try to keep up with the increasing digital prowess of big banks.

Monett, Missouri-based Jack Henry provides technology solutions and payment processing services primarily to community and regional financial institutions.

The company forecast 2024 earnings per share in the range of $5.09 to $5.13, above its previous forecast between $4.98 and $5.04.

For the second quarter ended Dec. 31, the company posted net income of $1.26 per share, compared with $1.10 per share a year earlier.

Jack Henry's services and support revenue rose 7.3% from a year earlier to about $312 million, while processing revenue increased 8.9% to $233.71 million.

Last month, Jack Henry announced that its CEO David Foss would retire on June 30 and Chief Operating Officer Greg Adelson would take up the mantle starting July 1.

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