Supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) will be reporting results this Tuesday after market hours. Here’s what to look for.
Manhattan Associates beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $262.8 million, up 3.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.
Is Manhattan Associates a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Manhattan Associates’s revenue to be flat year on year at $263.6 million, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Manhattan Associates has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at Manhattan Associates’s peers in the software-as-a-service segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Adobe delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 1.5%, and Paychex reported revenues up 10.2%, falling short of estimates by 1.1%. Adobe traded down 5.3% following the results while Paychex was also down 7.4%.
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 share prices up 5% on average over the last month. Manhattan Associates is up 4.6% during the same time and is heading into earnings with an average analyst price target of $206.11 (compared to the current share price of $201.50).
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