ESTC Beats Q3 Estimates But Barclays Cautious, Cuts Price Target

Barclays analyst Raimo Lenschow recently lowered the price target on Elastic N.V. (NYSE:ESTC) to $124 from $138 and kept an Overweight rating on the shares as part of a Q1 earnings preview. Elastic is a search artificial intelligence company that delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments.

The advisory thinks off-cycle software results will mirror the on-cycle names with solid Q1 numbers but cautious guidance. The share price moves will all be about positioning, the analyst tells investors in a research note.

A group of software engineers working in an open, futuristic office.

In earnings for the third fiscal quarter, the company had posted earnings per share of $0.63, beating market estimates by $0.16. The revenue over the period was $382 million, up over 16% compared to the revenue over the same period last year and smashing analyst expectations by $13.23 million. Total revenue is expected to be between $379 million and $381 million in the fourth fiscal quarter.

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