Stock Story -
Supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) will be reporting results tomorrow after the bell. Here's what investors should know.
Manhattan Associates beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $254.6 million, up 15.2% year on year. It was a decent quarter for the company, with full-year revenue guidance topping analysts' expectations but a decline in its gross margin.
Is Manhattan Associates a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Manhattan Associates's revenue to grow 11% year on year to $256.4 million, slowing from the 20.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Manhattan Associates has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 6.9% on average.
Looking at Manhattan Associates's peers in the software as a service segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Paychex (NASDAQ:PAYX) delivered year-on-year revenue growth of 5.3%, meeting analysts' expectations, and Adobe (NASDAQ:ADBE) reported revenues up 10.2%, in line with consensus estimates. Paychex traded down 5.7% following the results while Adobe was up 14.5%.
Read the full analysis of Paychex's and Adobe's results on StockStory.
There has been positive sentiment among investors in the software as a service segment, with share prices up 5% on average over the last month. Manhattan Associates is down 9.5% during the same time and is heading into earnings with an average analyst price target of $246.6 (compared to the current share price of $218.59).
![Earnings To Watch: Manhattan Associates (MANH) Reports Q2 Results Tomorrow](https://d68-invdn-com.investing.com/content/picee6eb55333f074e8a8f6e9283890492d.jpeg)