The 10-second takeaway
For the quarter ended March 31 (Q1), Manhattan Associates beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
Manhattan Associates booked revenue of $91.5 million. The three analysts polled by S&P Capital IQ anticipated sales of $84.5 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $71.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The four earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.55 for Q1 were 72% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.5%, 380 basis points better than the prior-year quarter. Operating margin was 19.6%, 910 basis points better than the prior-year quarter. Net margin was 12.5%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $94.4 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $371.0 million. The average EPS estimate is $2.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 31 members out of 43 rating the stock outperform, and 12 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Manhattan Associates a green thumbs-up, and three 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 $48.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.