Elastic (ESTC) stock rocketed higher late Thursday after the enterprise data software company reported fiscal second quarter earnings and sales that easily bested estimates.
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Elastic said that it earned an adjusted 59 cents per share on sales of $365 million for the October-ended quarter. Analysts polled by FactSet projected the San Francisco-based company would post adjusted earnings of 38 cents per share on sales of $352 million.
For the same period a year earlier, Elastic posted adjusted earnings of 37 cents per share on sales of $311 million.
For the current quarter, Elastic guided for sales of $368 million at the midpoint of its range. Prior to the company posting its results, analysts were projecting Elastic would tally $366 million in sales for the January-ending quarter, according to FactSet.
On the stock market today, Elastic stock rallied more than 21% to 114.75 in after-hours action.
More earnings coverage to come.
Elastic Stock: Technical Ratings
Elastic provides the leading search software for enterprises, along with a broader suite of data software tools that run on cloud providers such as Microsoft Azure, Amazon Web Services and Google Cloud.
The earnings reaction is adding on to a strong day for Elastic stock. Shares gained 6.4% in Thursday trading. Elastic was among data software stocks to rally following strong results from Snowflake (SNOW) late Wednesday.
But overall it has been a turbulent year for Elastic, which is down 16% year-to-date. That’s after a strong 2023 in which its shares more than doubled in value.
Elastic was a popular pick on Wall Street coming into 2024 to benefit from the next wave of enterprise AI spending. But shares tumbled 28% following its most recent earnings report in late August, which included a weaker-than-expected sales forecast.
Coming into the report, Elastic stock had an IBD Composite Rating of 58 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks typically have a Composite Rating of 90 or better.
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