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Elastic Q2 Beats Expectations—But Stock Still Struggles



Elastic (ESTC) delivered solid earnings of $0.64/share, beating estimates of $0.58 and crushing last quarter's projection of $0.42. Revenue hit $423.48M, slightly edging the $417.24M consensus.

Sounds great? Here's the catch: ESTC is down 10.9% YTD while the S&P 500 is up 12.9%. The company has crushed earnings estimates 4 times in a row, yet the market isn't rewarding it.

What's the deal? Analysts say it's about guidance and forward momentum. Current consensus for next quarter: $0.59 EPS on $429.34M revenue. With a Zacks Rank of #3 (Hold), expect sideways action in the near term.

Key takeaway: Strong fundamentals ≠ strong stock performance. Investors are more worried about whether Elastic can sustain this beat streak than celebrating today's numbers. The real test comes when management signals what's ahead.
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