Shares of Manhattan Associates (NASDAQ:MANH) have gotten crushed today, down by 11% as of 11:15 a.m. EDT, after the company reported third-quarter earnings yesterday after the market closed. Despite better-than-expected results, pessimism over the retail industry continues to hurt investor sentiment.
Revenue in the third quarter came in at $152.9 million, roughly flat from a year ago. License revenue fell to $18.8 million, down from $21.6 million a year ago. Adjusted earnings per share were $0.51. The Street was expecting sales of $150.4 million, with adjusted earnings per share of $0.50.
In a statement, CEO Eddie Capel acknowledged a "tough retail macro environment," but also said, "It's encouraging to see the market is demanding the cloud delivery model and validating that Manhattan's technology is superior and differentiated from competitive alternatives. We expect continued adoption of our Manhattan Active Omni cloud business as customers seek a cloud-first approach."
For a more detailed breakdown of the quarter, be sure to check out fellow Fool Dan Caplinger's take.
In terms of guidance, full-year 2017 revenue is expected in the range of $590 million to $600 million, with adjusted earnings per share of $1.85 to $1.89. Manhattan Associate also issued guidance for 2018, calling for $556 million to $568 million in revenue, and adjusted earnings per share of $1.26 to $1.29. The ranges for both the top and bottom lines next year represent declines, which could be rattling investors.