Jack Henry’s profits falter

Jack Henry & Associates Inc.’s (Nasdaq: JKHY) net income fell 14% in its fiscal 2019 third quarter.

The Monett-based financial industry software firm reported earnings of $59.3 million, or 77 cents per diluted share, compared with $69 million, or 89 cents per diluted share, a year earlier, according to a news release.

“Our operating margins continue to show the headwinds created by the double costs related to the migration to our new payments platform and the new pay-for-performance bonus program that we rolled out at the beginning of the year, which is utilizing a portion of the savings from the (Tax Cuts and Jobs Act),” Jack Henry Chief Financial Officer Kevin Williams said in the release.

Fiscal third-quarter financial notes:
• Revenue was up 2% to $380 million.
• Services and support revenue, which make up 62% of total revenue, dipped 1% to $234 million.
• Operating expenses moved up 7% to $303.9 million.

As of March 31, Jack Henry’s assets were $2 billion. The company has more than 9,000 banking industry customers, according to the release.

JKHY shares were trading at $142.75 as of 8:45 a.m., compared with a 52-week range of $116.79 to $163.68.