Manhattan Associates to Report Q3 Earnings: What's in Store?

Manhattan Associates MANH is set to report its third-quarter 2024 results on Oct. 22.

It expects third-quarter 2024 earnings to be $1.06 per share. Revenues are anticipated between $261 million to $265 million.

The Zacks Consensus Estimate for third-quarter earnings has been steady at $1.06 per share over the past 30 days, suggesting 0.95% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $263.36 million, indicating an increase of 10.45% from the figure reported in the year-ago quarter.

Manhattan Associates' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 26.61%.

Let's see how things have shaped up for the upcoming announcement:

Factors to Consider

Manhattan Associates' to-be-reported quarter is expected to have benefited from strong demand for its mission-critical cloud solutions in verticals including retail, manufacturing and wholesale. These three verticals drive more than 80% of MANH's bookings.

Higher competitive win rates are expected to have expanded Manhattan's clientele to new logos resulting in a healthy mix of conversions and cross-sells in the third quarter of 2024.

MANH's to-be-reported quarter is expected to have benefited from an expanding internal services organization and growing portfolio of Manhattan value partners.

MANH's expanding product portfolio now includes the likes of Fulfilment Experience Insight Dashboard, part of Manhattan Active Omni, and Manhattan Yard Management, part of the Manhattan Active Supply Chain Execution Platform. These new solutions are expected to boost top-line growth.

Manhattan Active Maven and Manhattan Assist, generative AI-powered solutions that automate customer service tasks and investment decision-making, are expected to have benefited MANH's top-line growth.

Its expanding footprint across cloud-based supply chain planning and supply chain execution verticals to provide operational forecasts bodes well.

However, uncertainty regarding the timing of project go-lives and numerous deal pushes are likely to have hurt Manhattan Associates' third-quarter results.

Continuing macroeconomic challenges are expected to have hurt growth rate in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Manhattan Associates has an Earnings ESP of 0.00% and carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Reddit has an Earnings ESP of +72.10% and a Zacks Rank #2.

RDDT shares have appreciated 53.2% year to date. Reddit is set to report its third-quarter 2024 results on Oct. 29.

CommVault Systems CVLT has an Earnings ESP of +4.46% and a Zacks Rank #3 at present.

CommVault shares have returned 83.2% year to date. CVLT is set to report its second-quarter fiscal 2025 results on Oct. 29.

Pegasystems PEGA has an Earnings ESP of +11.43% and has a Zacks Rank #3 at present.

Pegasystems shares have appreciated 50.1% year to date. PEGA is set to report its third-quarter 2024 results on Oct. 23.

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