Jack Henry starts fiscal year 21% ahead in earnings

Jack Henry & Associates Inc. (Nasdaq: JKHY) began its fiscal 2017 with first-quarter net income of $62.2 million, a 21 percent increase compared with $51.4 million a year earlier.

The Monett-based financial industry software firm posted diluted share earnings of 79 cents for the three months ended Sept. 30, a 15-cent uptick, according to a news release.

Jack Henry President and CEO David Foss said the quarter was a company record for revenue and earnings.

“Our combined sales teams ended the quarter ahead of plan, which is a good indicator to begin the year,” he said in the release. “We had two very successful client education conferences in the last two months for our Jack Henry Banking and Symitar brands, with record attendance by existing customers and over 40 new core prospects attending between the two conferences."

First-quarter financial notes:
    •    Jack Henry’s revenue rose 7 percent to $345 million.
    •    Cost of sales increased 6 percent to $194.8 million.
    •    The company spent $8.1 million on capital expenditures, mostly for the purchase of computer equipment.

Jack Henry, which serves roughly 10,500 customers, creates technology and payment processing products for the financial services industry. The company’s assets were $1.7 billion as of Sept. 30, according to the release.

JKHY shares were trading at $83 as of 8:43 a.m., compared with a 52-week range of $73.19 to $89.89.