Company Reports

We are discontinuing analyst coverage of Manhattan Associates.

Manhattan Associates reported second-quarter results that topped guidance. Revenue grew 9% year over year to $298 million, while non-GAAP operating margin was 34.9, compared with guidance of $287 million and 34.7%, respectively.

Manhattan Associates is the clear leader in the warehouse management systems software niche, in our view. Supply chains are complex, and any disruption to warehouse operations can have a significant ripple effect across the entire chain, as evidenced by sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which have also brought about margin expansion and accelerated growth, which we think will lead to improved returns.

Manhattan Associates reported first-quarter results that topped the company’s guidance. Revenue grew 7% year over year to $282 million, while non-GAAP operating margin was 32.4%, compared with guidance at $273 million and 31.0%, respectively.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

Manhattan Associates is the clear leader in the warehouse management systems software niche, in our view. Supply chains are complex, and any disruption to warehouse operations can have a significant ripple effect across the entire chain, as evidenced by sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which have also brought about margin expansion and accelerated growth, which we think will lead to improved returns.

Manhattan Associates is the clear leader in the warehouse management systems software niche, in our view. Supply chains are complex, and any disruption to warehouse operations can have a significant ripple effect across the entire chain, as evidenced by sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which have also brought about margin expansion and accelerated growth, which we think will lead to improved returns.

Manhattan Associates reported fourth-quarter results that topped the firm’s guidance. Revenue grew by 6% year over year to $270 million, while non-GAAP operating margin was 33.8%, compared with guidance at $264 million and 33.0%, respectively.

Manhattan Associates is the clear leader in the warehouse management systems software niche, in our view. Supply chains are complex, and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which have also brought about margin expansion and accelerated growth, which we think will lead to improved returns.

Manhattan Associates reported third-quarter results that topped the company’s guidance. Revenue grew 3% year over year to $276 million, while non-GAAP operating margin was 37.5%, compared with the high end of guidance at $272 million and 35.0%, respectively.

Manhattan Associates is the clear leader in the warehouse management systems (WMS) software niche, in our view. Supply chains are complex and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which has also brought about margin expansion and accelerating growth, which we think will lead to improving returns.

Manhattan Associates reported strong second-quarter results. Revenue grew by 3% year over year to $272 million, while non-GAAP operating margin was 37.1%, compared with the midpoint of guidance at $264 million and 33.0%, respectively.

Manhattan Associates is the clear leader in the warehouse management systems (WMS) software niche, in our view. Supply chains are complex and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which has also brought about margin expansion and accelerating growth, which we think will lead to improving returns.

Manhattan reported a robust first quarter. Revenue grew 3.0% year over year to $263 million, while non-GAAP operating margin was 34.7%, compared with the midpoint of guidance at $254 million and 31.0%, respectively.

Manhattan Associates announced that President and CEO Eddie Capel will be stepping down from his position on Feb. 12, 2025. Eric Clark, who has been serving as CEO of NTT Data North America, will be the new CEO of Manhattan Associates and will join the board of directors. Clark has had senior leadership positions with ServiceNow, Dell, and Hewlett Packard Enterprise, among other roles. Capel will continue to serve as executive vice-chairman of the board, assisting with the CEO transition and other special projects, as well. Shares have been chopped down from fourth-quarter results and are moving lower on the Feb. 10 news, as Capel’s direction was highly valued by investors. We are maintaining our fair value estimate of $230 per share. The company remains a leader in supply chain software, and we see shares as attractive but acknowledge the short-term pressure from recent events.

Manhattan Associates is the clear leader in the warehouse management systems (WMS) software niche, in our view. Supply chains are complex and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which has also brought about margin expansion and accelerating growth, which we think will lead to improving returns.

We are lowering our fair value estimate to $230 per share, from $240 previously, for wide-moat Manhattan Associates after the firm reported good fourth-quarter results but guided 2025 down based largely on weakening demand for implementation services and worsening currency headwinds. We thought the stock had been overvalued and believe our expectations were shy of consensus over the medium term. While the stock is down markedly after hours, adjustments to our model were less severe and mainly relate to 2025 as we thought expectations were running ahead of reality in recent months. We now view shares as fairly valued. We do not think results indicate any change in the competitive environment and we continue to view Manhattan as the leader in supply chain software.

Wide-moat Manhattan Associates reported third-quarter results ahead of our expectations, while the outlook for the fourth quarter and 2025 were mixed relative to our model. Notably, revenue guidance was slightly shy, and profitability was better with respect to our estimates. Despite continued deal slippage, management remains comfortable with the pipeline. The company continues to find success in migrating its customers to the cloud, which in turn also increases services revenue and ultimately results in operating leverage as its cloud business scales. We think Manhattan remains in the early stages of this process. Based on the results and the preliminary guidance for 2025, we maintain our fair value estimate of $240 per share. Given shares have more than doubled over the last two years, we now view the stock as overvalued.

Manhattan Associates is the clear leader in the warehouse management systems, or WMS, software niche, in our view. Supply chains are complex and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low double digit revenue growth annually over the next five years, with earnings growth of approximately 18% during that time. In 2020, Manhattan Associates began transitioning its flagship warehouse management solution. As a result, we see a years-long mix shift from on-premises to cloud adoption and a path to both strong growth and returns.

Wide-moat Manhattan Associates reported second-quarter results that were ahead of our expectations, on the back of balanced software demand strength. Management also raised its full-year revenue guidance for 2024 by $1 million more than the upside from the quarter, while also raising its full-year profitability target. The company continues to find success in migrating its customers to the cloud, which in turn also increases services revenue and ultimately results in operating leverage as its cloud business scales. We think Manhattan remains in the early stages of this process. Based on results and guidance, we have modestly increased our near-term estimates, and we are raising our fair value estimate to $240 per share from $225. We view the shares as fairly valued after the after-hours jump in the shares.