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Elastic (ESTC) to Post Q2 Earnings: What's in the Cards?

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Elastic N.V. (ESTC - Free Report) is scheduled to report second-quarter fiscal 2021 earnings on Dec 2, after the bell.

The company has an impressive surprise history, having delivered earnings beat in each of the last four quarters at an average of 61.5%.

Q2 Expectations

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $130.6 million, indicating 29.1% growth from the year-ago quarter’s reported figure. While the company’s subscription revenues are expected to have increased due to increased demand across Enterprise Search observability and security, professional services revenues are likely to have been driven by growth in service orders.

The Zacks Consensus Estimate for Elastic’s bottom line is pegged at a loss of 20 cents for the to-be-reported quarter, indicating improvement from loss of 22 cents incurred in the second quarter of fiscal 2020. Strong revenue performance and expense management are likely to have benefited the bottom line.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Elastic this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Elastic has an Earnings ESP of 0.00% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Elastic N.V. Price and EPS Surprise

Performance of Some Business Services Companies

Equifax Inc. (EFX - Free Report) reported third-quarter 2020 adjusted earnings of $1.87 per share that beat the Zacks Consensus Estimate by 16.2% and improved 26.4% on a year-over-year basis. Revenues of $1.07 billion outpaced the consensus estimate by 5.9% and improved 22% year over year.

ManpowerGroup Inc. (MAN - Free Report)  reported third-quarter 2020 earnings of $1.12 per share, beating the consensus mark by 90.5% but declining more than 37.5% year over year. Revenues of $4.58 billion surpassed the consensus mark by 8.7% but declined 12.7% year over year.

IHS Markit Ltd. recorded third-quarter fiscal 2020 adjusted earnings per share of 77 cents that surpassed the consensus estimate by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter.

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