The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Manhattan Associates met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved significantly.
Margins expanded across the board.
Manhattan Associates logged revenue of $83.5 million. The three analysts polled by S&P Capital IQ hoped for revenue of $84.6 million. Sales were 17% higher than the prior-year quarter's $71.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.60. The three earnings estimates compiled by S&P Capital IQ forecast $0.49 per share on the same basis. GAAP EPS of $0.50 for Q4 were 72% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 58.2%, 320 basis points better than the prior-year quarter. Operating margin was 19.4%, 710 basis points better than the prior-year quarter. Net margin was 12.6%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $85.1 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $367.5 million. The average EPS estimate is $2.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 28 members out of 39 rating the stock outperform, and 11 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Manhattan Associates a green thumbs-up, and two 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 $46.00.
New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does Manhattan Associates fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear." Click here for instant access to this free report.
- Add Manhattan Associates to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley 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 may not 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.
More from The Motley Fool
Why Manhattan Associates Shares Got Crushed Today
Results are expected to decline in the coming year.
Retail Weakness Keeps Hammering Manhattan Associates
Even better-than-expected quarterly results from the supply-chain software company couldn't get investors excited about the stock.
Why Delta Air Lines, Manhattan Associates, and Diana Shipping Jumped Today
These stocks rose on another solid day for the market. Find out why.