Jack Henry Earnings: Lower Bank M&A Remains a Headwind

Lower levels of bank M&A and a reduced level of deconversion fees continue to have a negative impact on Jack Henry's reported results. However, we see this as a transitory issue and think the underlying performance of this wide-moat business remains solid. Fiscal full-year results were roughly in line with our expectations. We will maintain our $181 fair value estimate and see shares as mildly undervalued at this point.