Core Viewpoint - Manhattan Associates (MANH) has experienced a significant decline of 20.4% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - MANH has an RSI reading of 22.31, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for MANH have increased by 3.8% over the last 30 days, which often correlates with price appreciation in the near term [6]. - MANH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

Core Viewpoint - Shares of Manhattan Associates experienced a significant decline of approximately 25% following its fourth-quarter earnings report, which, despite beating expectations, provided disappointing guidance for 2025 [1][3]. Financial Performance - Heading into the fourth quarter, Manhattan Associates was trading at 63 times free cash flow (FCF) and had achieved an average sales growth of 16% over the past three years, indicating high market expectations [2]. - The company reported a 7% revenue growth and a 14% adjusted earnings per share (EPS) growth, surpassing analysts' expectations [3]. Future Guidance - The guidance for 2025 projected only a 2.5% revenue growth and a 5% decline in adjusted EPS, leading to a reassessment of the company's valuation by the market [3]. Market Position - Despite short-term cyclicality affecting services revenue, Manhattan Associates maintains strong long-term prospects, being recognized as a leader in order management and point-of-sale systems by Forrester [4]. - The company is the first software provider to lead in both order management and point-of-sale systems, providing a competitive advantage as retail shifts towards omnichannel operations [5]. Growth Indicators - Remaining performance obligations (RPO) increased by 25% from the end of 2023, suggesting that the anticipated growth deceleration in 2025 may be short-lived [5]. - The company's valuation stands at 47 times FCF, with a remarkable return on invested capital (ROIC) of 82%, indicating a potentially strong investment opportunity at a more reasonable price [6].

Core Insights - Manhattan Associates (MANH) shares dropped over 20% following a surprise decline in profit outlook due to a "turbulent macro environment" [1][4] - The company forecasts a 4% to 6% year-over-year decrease in adjusted earnings per share (EPS) for full-year 2025, estimating EPS between $4.45 and $4.55, while revenue is expected to rise 2% to 3% to $1.06 billion to $1.07 billion [1][4] - Analysts had anticipated adjusted EPS of $4.57 and revenue of $1.07 billion [1] Financial Performance - Despite the negative outlook, the company reported better-than-expected fourth-quarter results, with adjusted EPS of $1.17 and revenue growth of 7% to $255.8 million, surpassing forecasts [2] - Remaining performance obligation (RPO) bookings increased by 25% to a record high, with expected revenue from these bookings at $1.78 billion [3]

For the quarter ended December 2024, Manhattan Associates (MANH) reported revenue of $255.8 million, up 7.4% over the same period last year. EPS came in at $1.17, compared to $1.03 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $253.48 million, representing a surprise of +0.92%. The company delivered an EPS surprise of +10.38%, with the consensus EPS estimate being $1.06.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Manhattan Associates (MANH) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.06 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.38%. A quarter ago, it was expected that this business software company would post earnings of $1.06 per share when it actually produced earnings of $1.35, delivering a surprise of 27.36%.Over the last four ...

Revenue Performance - Consolidated total revenue for Q4 2024 was $255.8 million, a 7.3% increase from $238.3 million in Q4 2023[4] - Full year 2024 total revenue was $1,042.4 million, representing a 12.2% increase from $928.7 million in 2023[7] - Total revenue for 2023 was $928.725 million, with a projected increase to $1,042.352 million in 2024, representing a growth of approximately 12.2%[27] - Revenue from the Americas segment increased from $719.195 million in 2023 to $802.486 million in 2024, a growth of about 11.6%[27] - EMEA revenue rose from $166.638 million in 2023 to $190.523 million in 2024, marking an increase of approximately 14.3%[27] - APAC revenue is projected to grow from $49.343 million in 2023 to $55.000 million in 2024, representing an increase of about 11.5%[27] Earnings and Profitability - GAAP diluted earnings per share for Q4 2024 was $0.77, slightly down from $0.78 in Q4 2023, while adjusted diluted EPS increased to $1.17 from $1.03[6] - Adjusted diluted EPS for Q4 2024 was $1.17, compared to $1.03 in Q4 2023, marking a 14% increase[26] - Net income for the year ended December 31, 2024, reached $218,364 thousand, compared to $176,568 thousand in 2023, reflecting a growth of 24%[25] - GAAP operating income for 2023 was $209.881 million, expected to rise to $261.596 million in 2024, indicating a growth of about 24.6%[27] - Adjusted non-GAAP operating income for 2023 was $281.452 million, with a forecast of $361.804 million for 2024, reflecting an increase of approximately 28.5%[27] Cash Flow and Operations - Cash flow from operations for Q4 2024 was $104.7 million, compared to $88.4 million in Q4 2023, reflecting a 18.5% increase[6] - The company reported a net cash provided by operating activities of $295,003 thousand for the year ended December 31, 2024, compared to $246,218 thousand in 2023, a growth of 20%[25] Share Repurchase and Equity - The company repurchased 155,444 shares for a total investment of $43.5 million during Q4 2024, with an increased share repurchase authority of $100 million announced in January 2025[6] - The company repurchased a total of 1,246 thousand shares in 2023, with a total cash outlay of $196.047 million, and plans to repurchase 1,165 thousand shares in 2024 for $286.366 million[32] Guidance and Projections - For 2025, the company projects total revenue guidance between $1,060 million and $1,070 million, indicating a growth range of 2% to 3%[8] - GAAP operating margin for 2025 is expected to be between 22.3% and 22.9%[8] - Adjusted diluted EPS guidance for 2025 is projected to be between $4.45 and $4.55, reflecting a decrease of 6% to 4% compared to 2024[8] Expenses and Investments - Research and development expenses for the year ended December 31, 2024, were $20,760 thousand, up from $15,674 thousand in 2023, representing a 32% increase[21] - Total equity-based compensation for the year ended December 31, 2024, was $93,206 thousand, compared to $71,571 thousand in 2023, reflecting a 30% increase[21] - Capital expenditures for 2023 totaled $4.730 million, with an increase to $8.675 million projected for 2024, indicating a growth of approximately 83.5%[31] Deferred Revenue and RPO - Deferred revenue as of December 31, 2024, was $277,970 thousand, an increase from $237,793 thousand in 2023, indicating a growth of 17%[23] - Remaining Performance Obligations (RPO) as of September 30, 2023, totaled $1,324,861,000, reflecting a growth from $1,238,672,000 as of June 30, 2023[33] - RPO is projected to increase to $1,780,400,000 by December 31, 2024, indicating a steady growth trend[33] Employment and Workforce - The company eliminated approximately 100 positions in January 2025 to align services capacity with customer demand amid macroeconomic uncertainty[9]

Wall Street analysts expect Manhattan Associates (MANH) to post quarterly earnings of $1.06 per share in its upcoming report, which indicates a year-over-year increase of 2.9%. Revenues are expected to be $253.48 million, up 6.4% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company announces its earnings, ...

Manhattan Associates (MANH) ,  a leading global technology company in omnichannel and supply chain management, has appreciated 31.1% in the year-to-date (YTD) period, significantly outpacing the Zacks Computer - Software industry’s return of 19%.Over the same time frame, it outpaced its industry peers, including BlackBerry (BB) , Autodesk (ADSK) and Blackbaud (BLKB) . On a YTD basis, shares of BB and ADSK have gained 11.9% and 23.7% while BLKB lost 12.2%. This outperformance demonstrates Manhattan's strong ...

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