MANH - Manhattan Associates - Two out of the three covering analysts have raised their forecasts for the current year

Manhattan Associates got a jolt higher when it easily exceeded estimates in the first quarter. It new client list is impressive and pulled in some seven-figure deals. A deeper look at the fundamentals reveals impressive numbers. Just over the past week, this year's earnings estimates have increased a dime to $1.40 per share.

Full Analysis

Manhattan Associates, Inc. (MANH) develops and provides supply chain software solutions for the planning and execution of supply chain activities worldwide. Its solutions include Supply Chain Process Platform, Supply Chain Platform Applications, Supply Chain Solution Suites, and X-Suite Solutions.

Supply Chain Platform Applications provides event and schedule tracking, alerts and notifications, inventory, order and shipment visibility, and analytics and reporting services.

Strong First Quarter

Last week, the company reported strong first-quarter results. The Atlanta-based company posted net income of $7.4 million, or 30 cents per share, compared with $5.4 million, or 19 cents per share, in the year-ago period. Excluding an expense for stock-based compensation and other items, the company reported adjusted earnings of 35 cents per share. Analysts expected 23 cents per share. Revenue climbed to $88.3 million from $78.2 million. Analysts forecast $84.6 million in revenue.

“We’re pleased with our performance in the first quarter of 2008. License revenue in all three regions was solid. EMEA and APAC posted very strong growth over the prior year’s first quarter. And while overall the Americas license revenue was equal to the prior year’s results, the U.S. portion of the Americas posted license revenue growth of more than 10 percent,” said Pete Sinisgalli, president and chief executive officer of Manhattan Associates.

“Overall revenue growth for the quarter was 13 percent, marking our 14th quarter in a row of 10-plus percent revenue growth. Moreover, our earnings grew substantially in the quarter. With a strong start to 2008, we are optimistic about our prospects for the full year and are raising our earnings per share guidance by $0.07 per share,” he added.

Digging Deeper

A deeper look at the fundamentals reveals impressive numbers. Just over the past week, this year's earnings estimates have increased a dime to $1.40 per share. Two out of the three covering analysts have raised their forecasts for the current year. MANH has posted an average surprise of 10.1% over the past four quarters. The stock is attractively valued with a PEG ratio of 1.2.

Content Courtesy: Zacks Investment Research

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