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Manhattan Associates Stock Surges on Strong Q3 Earnings and Raised Outlook
Manhattan Associates (MANH) stock surged in Wednesday trading, hitting a new 52-week high after the company posted third-quarter financial results that surpassed analyst expectations and raised its full-year forecast. The supply chain software provider's strong performance and upbeat outlook prompted several analysts to increase their price targets on the stock.
Earnings Beat and Cloud Milestone
In its earnings report released the prior evening, Manhattan Associates detailed a robust third quarter, outperforming on both revenue and profit. The results underscore the success of the company's ongoing transition to a cloud-based model.
- Adjusted Earnings Per Share (EPS): Came in at $1.55, beating the consensus estimate of $1.46.
- Total Revenue: Reached $306.2 million, exceeding the forecast of $297.01 million and marking the first time the company's quarterly revenue has surpassed the $300 million threshold.
- Cloud Revenue: Grew 28% year-over-year to $134 million. For the first time in company history, cloud revenue exceeded services revenue, a significant milestone highlighted by CEO Eric Clark.
Upgraded Outlook and Analyst Confidence
AdBuoyed by the strong results, management raised its financial outlook for the full year. The company increased its target for Remaining Performance Obligations (RPO) growth to 21%, up from a prior range of 18%–20%. RPO, which climbed 25% to $2.59 billion in the quarter, is a key metric for investors as it provides visibility into future revenue.
Wall Street responded positively to the report. Stifel raised its price target on MANH to $300 from $250, maintaining a Buy rating and citing the company's fourth straight quarter of record bookings. Citi also lifted its target to $280 from $260.
Market Reaction
The stock rose as much as 3.8% during the session to a new 52-week high of $254, sharply outperforming the broader market. The S&P 500 was up just 0.2% and the Nasdaq was nearly flat, indicating the rally was driven specifically by the company's fundamental performance rather than a market-wide trend. The move continues a dramatic re-rating for the shares, which have more than doubled from their 52-week low of $119.06.
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