Elastic Reports Q3 Results: Analysts Weigh In

Elastic NV ESTC shares are trading lower Friday after the company reported third-quarter results and multiple analysts updated price targets on the stock. 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.

Scotiabank analyst Patrick Colville maintained Elastic with a Sector Outperform rating and lowered the price target from $185 to $154. Scotiabank expressed concern regarding the company's third-quarter profitability and its plans to ramp investments with only modest margin expansion. 

Other notable analyst changes include: 

• Stifel analyst Brad Reback maintained Elastic with a Buy and raised the price target from $99 to $130.
• Goldman Sachs analyst Kash Rangan maintained a Neutral rating and raised the price target from $93 to $106.
• Rosenblatt analyst Blair Abernethy maintained a Buy rating and raised the price target from $105 to $136.

Related News: Dell Reports Better-Than-Expected Q4 Results Driven By AI Server Demand

Should I Sell My ESTC Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Elastic have increased by 83.82% in the past year. An investor who bought shares of Elastic at the beginning of the year would make a profit of $10.97 per share if they sold it today. The stock has fallen 0.96% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital loss of $7.08.

Elastic shares have an all-time high of $186.78, representing 58.94% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Elastic stock currently has an RSI of 66.09, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

ESTC Price Action: According to Benzinga Pro, Elastic ended the session down 12.56% at $117.01 Friday.

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Photo: Courtesy of Elastic NV