Palantir Technologies Set to Report Impressive Earnings Growth
Analysts Anticipate a Strong Fourth Quarter for PLTR
Palantir Technologies Inc. (PLTR), based in Denver, Colorado, specializes in developing software platforms for the intelligence community, primarily for counterterrorism efforts. With a market cap of $159.4 billion, the company excels in managing software deployments across various environments. Palantir also provides access to large language models (LLMs) to help analyze both structured and unstructured data. The company is scheduled to announce its fiscal fourth-quarter earnings for 2024 on Monday, Feb. 3.
Before this announcement, analysts predict that PLTR will report a profit of $0.07 per share on a diluted basis, a significant increase of 133.3% from $0.03 per share in the same quarter last year. In the past four quarters, the company has either met or exceeded consensus estimates two times while missing the forecast on two occasions.
Full-Year Projections Show Significant Increases
For the entire fiscal year, analysts foresee PLTR reporting earnings per share (EPS) of $0.21, which represents a remarkable 162.5% growth compared to $0.08 in fiscal 2023. Furthermore, EPS is predicted to rise another 42.9% year-over-year to $0.30 in fiscal 2025.
Stock Performance Exceeds Major Indices
In the past year, PLTR stock has shown exceptional performance, up 338%, far exceeding the S&P 500’s ($SPX) gain of 25.8%. It also outperformed the Technology Select Sector SPDR Fund’s (XLK) increase of 27.1% during the same period.
Growth Driven by AI Focus and Client Demand
Palantir’s growth can mainly be attributed to its emphasis on the operational layer of artificial intelligence (AI) and its ability to connect digital assets with real-world applications. The company’s Artificial Intelligence Platform (AIP) boot camps facilitate transitions for clients from proof-of-concept to full production, generating high demand in both commercial and government sectors. Recent innovations, including the AIP, have allowed for significant engagement in the private sector, with strategic partnerships established with major companies like Amazon.com, Inc. (AMZN) and Microsoft Corporation (MSFT). Additionally, a strong customer base, a solid sales pipeline, and the acquisition of new clients have contributed to Palantir’s notable performance.
Recent Earnings Highlights
In its quarterly report on Nov. 4, Palantir posted revenue of $725.5 million, surpassing Wall Street’s expectations of $703.7 million. The company also reported an adjusted EPS of $0.10, which was above the analyst predictions of $0.09. Following this news, Palantir’s shares rose over 23% in the subsequent trading session.
Analyst Outlook Remains Cautious
While PLTR’s performance has been strong, analysts display a cautious outlook, issuing an overall “Hold” rating. Among the 17 analysts covering the stock, two recommend a “Strong Buy,” eight suggest a “Hold,” two advise a “Moderate Sell,” and five recommend a “Strong Sell.” Although PLTR is currently trading above its mean price target of $42.80, the highest target of $80 indicates a potential upside of 14.3%.
On the date of publication,
Neha Panjwani did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data herein are for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
