Palantir Technologies Set to Release Q3 Earnings: Analysts Remain Cautious
Palantir Technologies Inc. (PLTR), valued at $94.8 billion, is making waves in the software and data analytics industry. Based in Denver, Colorado, the company creates platforms like Palantir Gotham, Foundry, Apollo, and AIP, designed to help intelligence agencies and organizations analyze vast amounts of data for better decision-making. The market awaits its fiscal Q3 earnings results, scheduled to be announced after the market closes on Monday, Nov. 4.
Upcoming Earnings Expectations
Analysts predict that Palantir will report a profit of $0.05 per share, marking a substantial increase of 66.7% from last year’s $0.03 per share. Over the last four quarters, the company has either met or exceeded Wall Street’s profit expectations twice, but it has also missed on two occasions—most recently missing the consensus EPS estimate by 25% in the last quarter.
Projected Growth for Fiscal 2024
Looking ahead to fiscal 2024, forecasts suggest PLTR will achieve an EPS of $0.19, which represents a remarkable 137.5% increase from $0.08 in fiscal 2023.
Stock Performance Outshines Competitors
Over the past year, Palantir Technologies has surged 159.3%, significantly outperforming both the S&P 500 Index’s ($SPX) 36.9% gain and the Technology Select Sector SPDR Fund’s (XLK) 38.6% increase.
Recent Earnings Boost Investor Confidence
On August 6, Palantir’s stock climbed 10.4% after an impressive Q2 earnings report. The company revealed a 27% year-over-year revenue jump to $678 million, exceeding analysts’ forecasts. This report showed record net income along with a notable 55% growth in U.S. commercial revenue, largely due to increased demand for its Artificial Intelligence Platform (AIP) and generative AI, which saw an 83% rise in customer count. Additionally, management raised its revenue forecast for the full year to approximately $2.8 billion, further boosting investor confidence.
Analysts’ Mixed Opinions on Stock Outlook
The consensus among analysts regarding Palantir’s stock remains cautious, with a “Hold” rating prevailing. Among the 14 analysts monitoring the stock, two recommend a “Strong Buy,” six suggest a “Hold,” one advocates for a “Moderate Sell,” while five opt for a “Strong Sell” rating. This outlook is slightly less optimistic than three months ago, when there were three “Strong Buy” ratings. Presently, PLTR is trading above the average analyst price target of $27.14.
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On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to 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.
