Elastic (NYSE: ESTC) stock is plummeting Friday. The company's share price was down 28.7% as of 3:05 p.m. ET, according to data from S&P Global Market Intelligence.

After the market closed yesterday, Elastic published results for the first quarter of its current fiscal year (which ended July 31). The enterprise search software company actually posted quarterly results that came in significantly ahead of Wall Street's targets, but its forward guidance is causing panic.

Elastic posted non-GAAP (adjusted) earnings per share of $0.35 in Q1, beating the average analyst estimate for per-share earnings of $0.25. Revenue also beat Wall Street's target, with sales of $347 million beating the average target by $2.39 million. Sales were up 18.1% year over year in the period, and adjusted earnings per share were up 40%. But it looks like momentum is poised to weaken as the year progresses, and management anticipates that sales will come in lower than it had initially forecasted.

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Source Fool.com