Manhattan Associates, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Manhattan Associates, Inc. (NASDAQ:MANH) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.5% to hit US$265m. Manhattan Associates also reported a statutory profit of US$0.85, which was an impressive 27% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Manhattan Associates

Taking into account the latest results, the consensus forecast from Manhattan Associates' eleven analysts is for revenues of US$1.04b in 2024. This reflects a reasonable 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 5.5% to US$3.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.03b and earnings per share (EPS) of US$2.87 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$252, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Manhattan Associates, with the most bullish analyst valuing it at US$285 and the most bearish at US$195 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Manhattan Associates' revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Manhattan Associates is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Manhattan Associates following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$252, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Manhattan Associates going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Manhattan Associates Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com