SPECIAL REPORT The Top 7 Stocks for 2024

Artificial Intelligence Is Powering Elastic (ESTC) Stock Higher

Advertisement

  • Elastic (ESTC) stock is rising today after artificial intelligence (AI) gave the firm a boost in the fiscal second quarter of 2024.
  • The company saw both revenue and earnings per share beat estimates.
  • With that comes an updated guidance for the fiscal year.
ESTC Stock - Artificial Intelligence Is Powering Elastic (ESTC) Stock Higher

Source: Tada Images / Shutterstock.com

Elastic (NYSE:ESTC) stock is rising higher on Friday as investors celebrate results from the data analytics company’s most recent earnings report.

The positive news for ESTC stock shareholders starts with the company’s adjusted EPS of 37 cents. That comes in well above Wall Street’s estimate of 24 cents per share.

Another boon to ESTC stock is the company’s revenue of $310.61 million. That beat analysts’ estimate of $304 million for the quarter. Sales also were an improvement over the $264.4 million the company saw during the same quarter in fiscal 2023.

Elastic CEO Ash Kulkarni said the following in the latest earnings report:

“Generative AI is driving a resurgence of interest in search as customers use semantic search, vector search, and hybrid search to ground large language models with their private business context, and Elasticsearch Relevance Engine provides the most comprehensive and enterprise-ready platform for these use cases.”

ESTC Stock Outlook

Elastic also provided an updated outlook for fiscal 2024 in its latest earnings report. The company is expecting adjusted EPS to range from $1.06 to $1.15 per share on revenue between $1.247 billion and $1.253 billion. For comparison, Wall Street expects adjusted EPS of $1.09 on revenue of $1.25 billion for the fiscal year.

ESTC stock is up 30.7% as of Friday morning alongside this earnings news. It also has seen some 6 million shares traded so far, as compared to a daily average of 1.3 million shares.

Investors seeking out more of the hottest stock market news today will want to keep reading!

We have all of the hottest stock market news ready to go on Friday! Among that is what has shares of QuantumScape (NYSE:QS), Fisker (NYSE:FSR) and Smart for Life (NASDAQ:SMFL) stock moving today. All of that info is available at the following links!

More Friday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/12/artificial-intelligence-is-powering-elastic-estc-stock-higher/.

©2024 InvestorPlace Media, LLC