Manhattan Associates Beats on Both Top and Bottom Lines
Manhattan Associates (NAS: MANH) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Manhattan Associates beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
Revenue details
Manhattan Associates booked revenue of $91.5 million. The three analysts polled by S&P Capital IQ anticipated sales of $84.5 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $71.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.60. The four earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.55 for Q1 were 72% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 58.5%, 380 basis points better than the prior-year quarter. Operating margin was 19.6%, 910 basis points better than the prior-year quarter. Net margin was 12.5%, 250 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $94.4 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $371.0 million. The average EPS estimate is $2.53.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 31 members out of 43 rating the stock outperform, and 12 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Manhattan Associates a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Manhattan Associates is hold, with an average price target of $48.50.
Over the decades, small-cap stocks like Manhattan Associates have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
Add Manhattan Associates to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
