Shares of Manhattan Associates Inc. (MANH) have tumbled more than 8% after slashing its second-quarter outlook.
The developer of supply chain software now anticipates adjusted earnings of 8 cents to 12 cents per share, compared to its April forecast of 15 cents to 30 cents. Analysts currently expect earnings of 14 cents per share, which has remained constant over the past 2 months.
The company cited lackluster license revenues as the primary reason for the reduced guidance as customers cut back on capital expenditure plans, including investment in supply chain solutions.
Earlier this year, Manhattan Associates eliminated 100 positions in an effort to counter excess capacity.
Meanwhile, the full-year consensus estimate has climbed a penny, or 2%, over the past 2 months to 61 cents per share.
The company is scheduled to release second-quarter results on Jul 21.
MANH, a Zacks #3 Rank (“Hold”) stock, is trading on higher-than-usual volume of approximately 236,000, against the average daily volume of about 133,000.
“MANH” Free Stock Analysis: Buy? Sell? Hold?
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