Yahoo Finance Manhattan Associates, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Manhattan Associates, Inc. (NASDAQ:MANH) just released its latest first-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$255m, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.86, 30% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Manhattan Associates
Taking into account the latest results, the consensus forecast from Manhattan Associates' ten analysts is for revenues of US$1.03b in 2024. This reflects a modest 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 8.4% to US$2.85 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.02b and earnings per share (EPS) of US$2.80 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$238, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Manhattan Associates at US$275 per share, while the most bearish prices it at US$195. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Manhattan Associates'historical trends, as the 9.6% annualised revenue growth to the end of 2024 is roughly in line with the 10% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Manhattan Associates is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Manhattan Associates. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Manhattan Associates going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 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.
