Manhattan Associates Earnings: Repeat of Last Quarter With Well-Rounded Performance

Narrow-moat Manhattan Associates reported first-quarter results ahead of our expectations on the back of the strength in cloud and services revenue. Management also raised its full-year revenue guidance for 2024 by approximately the upside for the first quarter and noted modest currency pressure while raising its full-year profitability target. The firm continues to succeed in migrating its customers to the cloud, increasing services revenue, and ultimately resulting in operating leverage as its cloud business scales. Based on results and guidance, we have increased our estimates and are raising our fair value estimate to $205 per share from $195. We view the shares as fairly valued after some after-hours pressure on the shares.