Manhattan Associates, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Manhattan Associates, Inc. (NASDAQ:MANH) shareholders, with its shares surging 13% to US$249 in the week since its latest full-year results. The result was positive overall - although revenues of US$929m were in line with what the analysts predicted, Manhattan Associates surprised by delivering a statutory profit of US$2.82 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Manhattan Associates

Taking into account the latest results, the consensus forecast from Manhattan Associates' nine analysts is for revenues of US$1.02b in 2024. This reflects a meaningful 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.5% to US$2.80 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.01b and earnings per share (EPS) of US$2.63 in 2024. So the consensus seems to have become somewhat more optimistic on Manhattan Associates' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.6% to US$236. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Manhattan Associates at US$260 per share, while the most bearish prices it at US$195. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Manhattan Associates'historical trends, as the 10% annualised revenue growth to the end of 2024 is roughly in line with the 9.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 12% annually. So although Manhattan Associates is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Manhattan Associates' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Manhattan Associates that you should be aware of.

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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.