Manhattan Associates Earnings: What To Look For From MANH

Petr Huřťák /
2023/10/23 7:02 am EDT

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

Last quarter Manhattan Associates reported revenues of $231 million, up 20.4% year on year, beating analyst revenue expectations by 6.62%. It was a very strong quarter for the company, with a solid beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.

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 14.2% year on year to $226.3 million, slowing down from the 17.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 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 6.61%.

Looking at Manhattan Associates's peers in the software as a service segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Adobe reported revenues up 10.3% year on year, exceeding estimates by 0.47%. Adobe was flat on the results.

Read our full analysis of Adobe's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share price declining 3.91% over the last month. Manhattan Associates is up 0.47% during the same time, and is heading into the earnings with analysts' price target of $203.2, compared to share price of $196.9.

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.

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