Jack Henry's profit rises on higher demand for fintech products

(Reuters) - Fintech firm Jack Henry & Associates on Tuesday raised its full-year profit forecast and reported a rise in second-quarter earnings, helped by steady growth in its processing as well as services and support segments.

Demand for financial technology has remained robust as small and mid-sized institutions try to keep up with the increasing digital prowess of big banks.

Monett, Missouri-based Jack Henry provides technology solutions and payment processing services primarily to community and regional financial institutions.

The company forecast 2024 earnings per share in the range of $5.09 to $5.13, above its previous forecast between $4.98 and $5.04.

For the second quarter ended Dec. 31, the company posted net income of $1.26 per share, compared with $1.10 per share a year earlier.

Jack Henry's services and support revenue rose 7.3% from a year earlier to about $312 million, while processing revenue increased 8.9% to $233.71 million.

Last month, Jack Henry announced that its CEO David Foss would retire on June 30 and Chief Operating Officer Greg Adelson would take up the mantle starting July 1.

(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)