Elastic Reports Q3 Results: Analysts Weigh In

Here’s a look at the details.

The Details: Elastic reported quarterly earnings of 36 cents per share, beating the Street estimate of 32 cents, and quarterly sales of $328 million, slightly above the estimate of $323.14 million.

The company raised its fiscal year 2024 revenue outlook to within a range of $1.26 billion to $1.262 billion, versus the consensus estimate of $1.25 billion, and earnings of between $1.15 and $1.18 per share, above the $1.14 per share estimate.

Analysts Weigh In: Elastic shares fell more than 10% following the print, and Truist analyst Joel P. Fishbein attributed the dip to investors’ disappointment in SaaS growth. He noted shareholders were looking for SaaS growth of more than 30% year-over-year, versus the 29.5% growth reported.

Truist maintained its Buy rating and $140 price target on the stock.

Piper Sandler analyst Rob D. Owens attributed investor “trepidation” following the print to the company’s cloud revenue falling to only $1 million above Street estimates in the third quarter.

Piper Sandler saw traction in the cloud business sector remaining strong, and maintained Elastic’s Overweight rating and $131.00 price target.