Earnings To Watch: Manhattan Associates (MANH) Reports Q2 Results Tomorrow

Petr Huřťák /
2023/07/24 7:07 am EDT

Supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Manhattan Associates reported revenues of $221 million, up 23.5% year on year, beating analyst revenue expectations by 10.2%. It was an impressive quarter for the company, with a solid beat of analyst estimates. Revenue and EPS guidance for the current year were raised by 4% and 7.5%, respectively, and the updated guidance topped Consensus estimates.

Is Manhattan Associates buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Manhattan Associates's revenue to grow 12.9% year on year to $216.7 million, slowing down from the 15.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Manhattan Associates Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.51%.

Looking at Manhattan Associates' peers in the software as a service segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Adobe delivered top-line growth of 9.8% year on year, beating analyst estimates by 0.92% and Paychex reported revenues up 7.45% year on year, exceeding estimates by 0.6%. Adobe traded up 1.88% on the results, Paychex was up 1.99%. Read our full analysis of Adobe's results here and Paychex's results here.

There has been positive sentiment among investors in the software as a service segment, with the stocks up on average 9.29% over the last month. Manhattan Associates is up 4.17% during the same time, and is heading into the earnings with analyst price target of $183.00, compared to share price of $193.97.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.