Elastic shares jump after upbeat results, guidance

Elastic

28/02/2025 16:41

** U.S.-listed shares of Elastic NV ESTC.N last up 12.6% on Fri, with the stock on track for its biggest daily pct gain since Nov, after the data analytics firm released quarterly results and a forecast that were stronger than expected

** The Netherlands-headquartered firm late Thurs reported fiscal Q3 earnings and rev that surpassed analyst expectations, while it forecast fiscal Q4 EPS and rev that were also above consensus

** It projected current-qtr adj EPS of 36-37 cents and rev of $379-$381 mln. Analysts on avg called for earnings of 31 cents and rev of $374.2 mln, per LSEG data

** Co also named Navam Welihinda as its new CFO

** Co said in its statement that continued interest from customers building generative AI applications and consolidating onto a single platform helped drive the outperformance in the qtr

** Several brokerages raised their price targets on the stock following the news, including UBS which increased its price target to $148 from $140

** Morgan Stanley maintained 'overweight' rating and $140 PT, saying highlight in Q3 was the unexpected Elastic Cloud rev growth of +26% y/y in constant currency despite fears of customer commitment shortfall

** The stock was last at $114. Current median 12-month price target of $137 is up from $130 in late January - LSEG

** Including the session move, stock is up about 15% YTD and up ~50% over the past six months. Over the same time frame, the S&P 500 .SPX is up just 0.3% and about 4%, respectively

(Reporting by Caroline Valetkevitch; additional reporting by Lance Tupper)

((caroline.valetkevitch@thomsonreuters.com))