Manhattan Associates Inc (NASDAQ:MANH)
Yesterday, Manhattan Associates, Inc., a global software solutions company, announced their third quarter 2016 financial results. Manhattan Associates reported adjusted third quarter earnings of $0.50 per share which beat analyst expectations of $0.47 per share. Manhattan Associates reported third quarter revenues of $152.2 million which was up from prior year same quarter of $142.3 million.
Manhattan Associates, Inc. CEO’s Comments
Eddie Capel, Manhattan Associates President and CEO, said,
We delivered another good quarter of financial performance growing our business with solid customer activity and competitive win rates...We remain focused on serving our customers and investing in omni-channel, retail store and distribution management innovation to extend our market leadership. Demand for our solutions continues to be solid and we are making excellent progress with our innovation road map. Our outlook for the balance of 2016 and beyond is quite positive.
MANH Technical Analysis
MANH opened trading yesterday at $58.84, which was up from the previous day’s trading close of $57.90. MANH closed trading yesterday at $59.01 and crashed down after market to $53.80, equivalent to a 9% decrease from the closing price. Taking a look at the daily chart we can see the last time MANH traded below these levels we have to go back to March 28th when it traded at $52.78. Taking a closer look at the daily chart we can see that MANH has been in an overall downward trend dating back to July 8th when it traded at $67.29.
MANH has a float of 71.02 million shares and traded 1.90 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see MANH open trading on Wednesday below $55.50 and if it does, I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company operates in three segments: the Americas; Europe, Middle East, and Africa; and Asia Pacific. It provides supply chain solutions, such as distribution management, transportation management, supply chain convergence, and visibility solutions; omni-channel central and local solutions; and inventory optimization and planning solutions.
The company also offers Manhattan SCALE, a portfolio of logistics execution solutions that offers trading partner management, yard management, optimization, warehouse management, and transportation execution services. In addition, it provides professional services, including solutions planning and implementation, and related consulting services; customer training and support services; and software enhancement services.
Further, the company provides training and change management services; and resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. It offers products through direct sales personnel, as well as through partnership agreements with various organizations. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.