Manhatten Associates, Inc. (MANH) recently rebounded from a key long-term trend line after experiencing a bout of weakness for the last few months. With a Q2 earnings surprise of 38% and a bullish 12% next-year growth estimate, this company has plenty of upward momentum.
Manhattan gave its share price a little shot in the arm on July 20 with better than expected Q2 results that easily beat the Street.
Second-Quarter Results
Revenue for the period was up 33% from last year to $77.6 million. Earnings also came in strong at 36 cents, 38% ahead of the Zacks Consensus Estimate, pushing the company’s average earnings surprise to 86% over the last four quarters.
The company noted that the good quarter was driven by new license wins and expanding partnerships with existing customers. Manhattan also noted that it landed two contracts during the quarter with a price tag above $1 million.
Manhattan was also busy buying back its common stock during the quarter, repurchasing 869,000 shares for about $25 million to complete the share buyback program that was approved by the Board in April. The company now has one $25 million repurchase remaining after another approval from July.
Awesome Balance Sheet
Manhattan used the strong performance to strengthen its already great balance sheet, with cash and equivalents up $30 million from last year to $118 million against no debt.
Estimates
Estimates took a nice jump on the good quarter, with the current year up 6 cents to $1.15, a 48% growth projection from last year. The next-year estimate is up 4 cents in the same time to $1.29, a solid 12% growth projection.
Not only has this stock recently turned back to its bullish ways, it also has value, trading with a forward P/E of 24X against its peer average of 29X.
2-Year Chart
On the chart, shares recently rebound from a key long-term trend line after suffering from a bout of weakness for the last few months. The MACD below the chart is bullish too, with the short-term average moving ahead of the long-term average. Look for support from the long-term trend line on any weakness, take a look below.
http://www.zacks.com/commentary/14485/Manhatten+Associates%2C+Inc.>Read the May 7 MANH article here
Last Week’s Momentum Zacks Rank Buy Stocks
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Dupont & Co. (DD) recently hit a new multi-year high at $42.75 after reporting a solid 24% Q2 earnings surprise in late July. With a dividend yield of 3.9% and rising estimates, Dupont has some very solid upward momentum. Read Full Article.
Alliance Holdings GP, LP (AGHP) recently hit a new all-time high of $40.44 after reporting a solid 28% Q2 earnings surprise in late July as the industry recovers from a tough 2009. With estimates on the rise and a hefty dividend yield of more than 5%, AHGP has some solid upward momentum. Read Full Article.
CARBO Ceramics, Inc. (CRR) is once again pressuring its all-time high after reporting another great quarter in late July that included a 27% earnings surprise. With a next-year estimate of 21%, the longer-term picture looks good too. Read Full Article.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
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