Earnings Update: Here's Why Analysts Just Lifted Their Manhattan Associates, Inc. (NASDAQ:MANH) Price Target To US$271
Manhattan Associates, Inc. (NASDAQ:MANH) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.1% to hit US$306m. Statutory earnings per share (EPS) came in at US$1.04, some 2.7% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Manhattan Associates from ten analysts is for revenues of US$1.27b in 2027. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 14% to US$4.17. In the lead-up to this report, the analysts had been modelling revenues of US$1.26b and earnings per share (EPS) of US$4.22 in 2027. 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.
Check out our latest analysis for Manhattan Associates
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 15% to US$271. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Manhattan Associates at US$305 per share, while the most bearish prices it at US$230. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Manhattan Associates is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Manhattan Associates' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. Factoring in the forecast slowdown in growth, it seems obvious that Manhattan Associates is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Manhattan Associates' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Manhattan Associates going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Manhattan Associates that you should be aware of.
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