Jack Henry & Associates Inc shares rose as much as 8 percent on Wednesday to their highest in more than a year, following a better-than-expected quarterly earnings and strong outlook for fiscal 2010.
On a conference call on Wednesday, the company said it expected revenue to grow by 3 to 5 percent in fiscal 2010 and projected a 6 to 8 percent rise in operating income.
The payment processor also said it expected its acquisition of Goldleaf Financial Solutions Inc to add over $65 million in annualised revenue in the first year.
We anticipate this would have an accretive impact to our FY10 earnings of 2 to 4 cents per share, Chief Financial Officer Kevin Williams said on the call.
The earnings should more than double in fiscal 2011 as the firm curbs expenses, he added. Earlier this week, Jack Henry said it agreed to acquire Goldleaf in a cash deal valued at about $19.1 million.
For the fourth quarter ended June, earnings rose to 33 cents from 28 cents from a year-ago period, beating analysts' estimate of 30 cents a share.
Shares of the Monett, Missouri-based company were trading up $1.26 at $23.35 in midday trade on Nasdaq. Earlier in the session, they touched a high of $23.78, their best since Aug. 15 last year.
(Reporting by Brenton Cordeiro and Nishant Kumar; editing by Maju Samuel)