Elastic (NYSE:ESTC) Announces Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Elastic beat quarterly expectations, reporting EPS of $0.61 versus the $0.56 consensus estimate and revenue of $450.68 million, slightly ahead of forecasts.
• The stock rose 6.6% after the earnings release, trading at $57.48 on higher-than-normal volume.
• Analysts remain cautiously positive, with a consensus rating of “Moderate Buy” and an average target price of $86.96, though several firms recently trimmed their price targets.

Elastic (NYSE:ESTC - Get Free Report) announced its earnings results on Thursday. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.05, FiscalAI reports. Elastic had a negative return on equity of 2.34% and a negative net margin of 5.04%.The business had revenue of $450.68 million for the quarter, compared to analyst estimates of $446.66 million.

Elastic Stock Up 6.6%

ESTC stock traded up $3.58 during mid-day trading on Thursday, reaching $57.48. The company had a trading volume of 5,983,927 shares, compared to its average volume of 2,020,465. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.82 and a quick ratio of 1.82. The stock has a 50 day simple moving average of $50.16 and a two-hundred day simple moving average of $63.05. The company has a market capitalization of $5.95 billion, a price-to-earnings ratio of -71.85, a PEG ratio of 102.95 and a beta of 0.88. Elastic has a 52 week low of $42.05 and a 52 week high of $96.07.

Insider Transactions at Elastic

In other news, CTO Shay Banon sold 4,283 shares of Elastic stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $52.28, for a total value of $223,915.24. Following the completion of the transaction, the chief technology officer owned 4,354,945 shares of the company's stock, valued at $227,676,524.60. This trade represents a 0.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Ken Exner sold 4,310 shares of Elastic stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $52.28, for a total transaction of $225,326.80. Following the completion of the transaction, the insider directly owned 222,728 shares of the company's stock, valued at approximately $11,644,219.84. This trade represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 38,188 shares of company stock valued at $1,996,469. 12.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Orion Porfolio Solutions LLC boosted its stake in shares of Elastic by 1.4% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 8,593 shares of the company's stock worth $726,000 after acquiring an additional 118 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Elastic by 17.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company's stock worth $98,000 after acquiring an additional 171 shares during the period. Public Employees Retirement System of Ohio boosted its stake in shares of Elastic by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 28,323 shares of the company's stock worth $2,393,000 after acquiring an additional 175 shares during the period. California State Teachers Retirement System boosted its stake in shares of Elastic by 0.3% during the 2nd quarter. California State Teachers Retirement System now owns 83,403 shares of the company's stock worth $7,033,000 after acquiring an additional 219 shares during the period. Finally, Fred Alger Management LLC boosted its stake in shares of Elastic by 11.6% during the 3rd quarter. Fred Alger Management LLC now owns 3,347 shares of the company's stock worth $283,000 after acquiring an additional 347 shares during the period. Institutional investors own 97.03% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Cantor Fitzgerald dropped their target price on Elastic from $66.00 to $59.00 and set a "neutral" rating on the stock in a research report on Tuesday. Rothschild & Co Redburn assumed coverage on shares of Elastic in a research report on Thursday, April 23rd. They issued a "neutral" rating and a $49.00 target price for the company. TD Cowen decreased their target price on shares of Elastic from $65.00 to $60.00 and set a "hold" rating for the company in a research report on Tuesday. Oppenheimer decreased their target price on shares of Elastic from $100.00 to $85.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Finally, Citigroup decreased their target price on shares of Elastic from $115.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Elastic has a consensus rating of "Moderate Buy" and a consensus target price of $86.96.

About Elastic

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.

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