MONETT, Mo. - Jack Henry & Associates Inc. (NASDAQ: JKHY), a financial technology firm, announced the appointment of two new members to its Board of Directors on Monday. Tammy LoCascio and Lisa Nelson have joined the board following a temporary increase in board seats from nine to ten. This expansion is in effect until the company's 2024 Annual Meeting of Stockholders, where the number of directors is expected to revert to nine.
LoCascio, currently serving as Senior Executive Vice President and Chief Operating Officer of First Horizon (NYSE:FHN) Corporation, brings a wealth of experience in banking operations and human capital management. Her career includes previous roles as Chief Human Resources Officer and Executive Vice President of Consumer Banking at First Horizon, as well as leadership positions in management consulting and regional banks.
Nelson, the President of Equifax Inc (NYSE:EFX).'s International business, contributes her expertise in technology company management, strategic acquisitions, and growth initiatives. Her extensive background includes serving as President of Equifax Australia and New Zealand, and General Manager of Equifax Canada, as well as executive leadership roles at Fair Isaac (NYSE:FICO) Corporation and EFunds Corporation.
David Foss, Jack Henry Executive Board Chair, expressed enthusiasm about the new appointments, highlighting LoCascio's experience in banking strategy and technology, alongside Nelson's management expertise in technology companies. Foss anticipates valuable contributions from their unique perspectives and skills.
Jack Henry & Associates, an S&P 500 company, has been providing technology solutions for financial institutions for over 48 years. The company supports approximately 7,500 clients, fostering innovation and offering a modern ecosystem that integrates with leading fintechs.
The company's expansion of its board and the inclusion of LoCascio and Nelson align with its strategic direction and growth initiatives. The announcement is based on a press release statement and includes forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.
In other recent news, Jack Henry & Associates reported a promising third quarter for fiscal 2024, with GAAP revenue up by 6% and non-GAAP revenue increasing by 7%. Growth was observed across all segments, including core, payments, and complementary solutions. New contracts were secured, notably for the Financial Crimes Defender solution and the Banno digital banking platform. A recent survey disclosed that 80% of bank and credit union CEOs plan to augment technology spending, targeting fraud detection and digital banking.
In terms of leadership changes, Shannon McLaughlin, currently the President of Jack Henry Credit Union Solutions, is set to become the Chief Operating Officer effective July 1st. Looking ahead, Jack Henry maintains a positive outlook, with a robust sales pipeline and innovative product development on the horizon. The company also anticipates sustained strong financial performance and innovative solution delivery, coupled with increased annual non-GAAP margin expansion and revised upward GAAP EPS guidance.
However, some concerns were raised about slower card transactions impacting the fiscal fourth quarter non-GAAP revenue growth, which is expected to be slightly below 7%. Despite these challenges, Jack Henry sees strong demand for tech modernization and new products, and expects stable or accelerating revenue growth based on sales momentum. These recent developments underline Jack Henry & Associates' commitment to innovation and operational efficiency in the evolving banking industry.
InvestingPro Insights
Amidst the strategic expansion of its board, Jack Henry & Associates Inc. (NASDAQ: JKHY) continues to be a notable player in the financial technology landscape. With a market capitalization of 12.18 billion USD and a robust revenue growth of 8.12% over the last twelve months as of Q3 2024, the company's financial health remains a key factor for investors. Jack Henry's commitment to innovation and client support is reflected in its consistent profitability, as evidenced by a gross profit margin of 41.51% within the same period.
Investors might also take interest in the company's dividend track record. As an InvestingPro Tip, Jack Henry has raised its dividend for 20 consecutive years, demonstrating a strong commitment to shareholder returns. Additionally, the company has maintained dividend payments for an impressive 35 consecutive years, underlining its financial stability and prudent capital management. These aspects are particularly pertinent considering the recent board expansion, which may influence future strategic decisions impacting shareholder value.
However, it is worth noting that Jack Henry is trading at a high earnings multiple, with a P/E ratio of 32.31, which is relatively high compared to near-term earnings growth. This suggests that the stock might be priced optimistically in relation to its earnings potential. Nonetheless, the company’s ability to generate cash flows that can sufficiently cover interest payments is a positive sign of financial prudence.
For investors seeking a deeper dive into Jack Henry & Associates' financial metrics and performance indicators, InvestingPro offers additional insights. There are more InvestingPro Tips available for those who wish to explore the company's valuation and growth prospects in greater detail. To take advantage of this resource and enhance your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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