The 10-second takeaway
For the quarter ended March 31 (Q1), Manhattan Associates met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins grew.
Manhattan Associates tallied revenue of $96.6 million. The three analysts polled by S&P Capital IQ expected to see sales of $97.9 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $91.5 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 $0.74. The four earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. Non-GAAP EPS of $0.74 for Q1 were 23% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.68 for Q1 were 24% higher than the prior-year quarter's $0.55 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 55.4%, 310 basis points worse than the prior-year quarter. Operating margin was 20.4%, 80 basis points better than the prior-year quarter. Net margin was 13.8%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $104.4 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $412.9 million. The average EPS estimate is $3.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 33 members out of 47 rating the stock outperform, and 14 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 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 outperform, with an average price target of $65.50.
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