Motley Fool
All posts from Motley Fool
Motley Fool in Motley Fool,

Why Manhattan Associates Shares Got Crushed Today

What happened

Shares of Manhattan Associates (NASDAQ: MANH) have gotten crushed today, down by 11% as of 11:15 a.m. EDT, after the company reported third-quarter earnings yesterday after the market closed. Despite better-than-expected results, pessimism over the retail industry continues to hurt investor sentiment.

So what

Revenue in the third quarter came in at $152.9 million, roughly flat from a year ago. License revenue fell to $18.8 million, down from $21.6 million a year ago. Adjusted earnings per share were $0.51. The Street was expecting sales of $150.4 million, with adjusted earnings per share of $0.50.

Image source: Getty Images.

In a statement, CEO Eddie Capel acknowledged a "tough retail macro environment," but also said, "It's encouraging to see the market is demanding the cloud delivery model and validating that Manhattan's technology is superior and differentiated from competitive alternatives. We expect continued adoption of our Manhattan Active Omni cloud business as customers seek a cloud-first approach."

Now what

For a more detailed breakdown of the quarter, be sure to check out fellow Fool Dan Caplinger's take.

In terms of guidance, full-year 2017 revenue is expected in the range of $590 million to $600 million, with adjusted earnings per share of $1.85 to $1.89. Manhattan Associate also issued guidance for 2018, calling for $556 million to $568 million in revenue, and adjusted earnings per share of $1.26 to $1.29. The ranges for both the top and bottom lines next year represent declines, which could be rattling investors.

10 stocks we like better than Manhattan Associates
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Manhattan Associates wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of October 9, 2017

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Manhattan Associates. The Motley Fool has a disclosure policy.