Manhattan Associates Earnings Preview

Motley Fool Staff
Updated

Investors hope Manhattan Associates (NAS: MANH) will top analyst estimates once again after beating predictions by $0.19 in the previous quarter. The company will unveil its latest earnings on Tuesday, Oct. 18. Manhattan Associates is a developer and provider of supply chain software solutions that help organizations optimize business advantages gained through those solutions.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Manhattan Associates better than competitor JDA Software Group overall. Three out of four analysts rate JDA Software Group a buy compared to one of one for Manhattan Associates. Wall Street has warmed to the stock over the past three months, with analysts increasing their endorsement from hold to moderate buy.

  • Revenue Forecasts: On average, analysts predict $85.5 million in revenue this quarter. That would represent a rise of 15.6% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.43 per share.

What our community says:
CAPS All-Stars are solidly behind the stock with 86.7% awarding it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 71.1% give it an "outperform" rating. Fools are gung-ho about Manhattan Associates, though the message boards have been quiet lately with only 15 posts in the past 30 days. Despite the majority sentiment in favor of Manhattan Associates, the stock has a middling CAPS rating of three out of five stars.

Management:
Manhattan Associates' profit has risen year over year by an average of 4.2% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

59.6%

54.7%

55.0%

55.1%

Operating Margin

20.6%

10.5%

12.3%

13.0%

Net Margin

14.0%

10.0%

9.0%

8.4%

For all our Manhattan Associates-specific analysis, including earnings and beyond, add Manhattan Associates to My Watchlist.

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