Stock Story -
Search software company Elastic (NYSE:ESTC) will be reporting results tomorrow after the bell. Here’s what investors should know.
Elastic beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $347.4 million, up 18.3% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly. It added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,370.
Is Elastic a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Elastic’s revenue to grow 14.1% year on year to $354.3 million, slowing from the 17.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Elastic has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.5% on average.
Looking at Elastic’s peers in the data and analytics software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Confluent (NASDAQ:CFLT) delivered year-on-year revenue growth of 25%, beating analysts’ expectations by 2.1%, and Teradata (NYSE:TDC) reported flat revenue, topping estimates by 5.3%. Confluent traded up 13.3% following the results while Teradata was down 14.7%.
Read the full analysis of Confluent’s and Teradata’s results on StockStory.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 11.8% on average over the last month. Elastic is up 11.1% during the same time and is heading into earnings with an average analyst price target of $100.96 (compared to the current share price of $88.27).