Jack Henry earnings dip despite revenue increase

Though revenue was up 5 percent, Jack Henry & Associates Inc. (Nasdaq: JKHY) posted a dip in fiscal 2017 second-quarter profits.

On revenue of $348.6 million, the Monett-based financial industry software firm’s net income decreased by 1 percent to $58.8 million. Earnings per diluted share inched up a penny to 75 cents, according to a news release.

The drop in earnings is attributable, in part, to a 4 percent increase in cost of sales to $198.1 million and a 17 percent leap in provision for income taxes to $29.7 million. Jack Henry Chief Financial Officer Kevin Williams said in the release that net income would have grown by 10 percent in the quarter had it not been for the income tax increases.

Second-quarter financial notes:
    •    Operating income rose 5 percent to $88.6 million.
    •    Revenue set a quarterly record for the company.
    •    Gross profits climbed 6 percent to $150.4 million.

As of Dec. 31, Jack Henry had assets of $1.7 billion. The company, which serves more than 10,000 customers, creates technology and payment processing products for the financial services industry, according to the release.

JKHY shares were trading at $89.04 as of 8:36 a.m., compared with a 52-week range of $75 to $91.48.

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