Manhattan Associates Shares Tank 24% On Soft Guidance

Manhattan Associates (MANH) shares plummeted by 24% on Wednesday, January 29, 2025, following the company's release of its fourth-quarter earnings report and cautious guidance for the upcoming fiscal year. The significant drop in the stock price can be attributed to the company's revised revenue and earnings growth projections, which fell short of analysts' expectations.

Manhattan Associates reported revenue of $255.8 million for the fourth quarter, surpassing analysts' estimates of $253.1 million. Both earnings and sales figures exceeded expectations, with adjusted earnings per share (EPS) coming in at $1.17 compared to an estimate of $1.06. Despite the positive quarterly performance, the company's forecast for the fiscal year 2025 fell short of analysts' predictions.

Manhattan Associates management provided guidance for FY 2025, expecting earnings between $4.45 and $4.55 per share, representing a decline of 4% to 6% year-over-year. The company also expects revenue to grow by 2% to 3% to $1.06 billion to $1.07 billion. This guidance led investment banks to issue a hold rating on the stock, as analysts highlighted potential challenges in revenue and earnings per share growth for the company moving forward.



The company's CEO, Eddie Capel, remained optimistic about the company's market growth despite the cautious global economy, stating, "We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious on the turbulent macro environment, our business momentum is solid, and our team is devoted to our customers' success."

Analysts have also adjusted their price targets for Manhattan Associates' stock following the earnings report. Truist Securities analyst Terry Tillman maintained a Buy rating on Manhattan Associates but lowered the price target from $310 to $285. Piper Sandler analyst Quinton Gabrielli reiterated an Overweight rating on Manhattan Associates but lowered the price target from $326 to $268. Raymond James analyst Brian Peterson maintained an Outperform rating on Manhattan Associates but lowered the price target from $305 to $270.



The significant drop in Manhattan Associates' stock price can be attributed to the company's cautious outlook on the global economy and the revised revenue and earnings growth projections for the fiscal year 2025. Investors may be concerned about the company's ability to maintain its current growth trajectory and meet its strategic objectives in the face of these challenges. As the company continues to navigate the turbulent macro environment, investors will closely monitor its performance and any updates on its guidance.