Palantir Technologies Surges After Strong Q4 Earnings Report
On Wednesday, Palantir Technologies PLTR saw its stock price rise over 20% following impressive Q4 results announced last night.
The surge in interest surrounds Palantir’s artificial intelligence platform (AIP), which has led the stock to exceed $100, marking an increase of 500% over the past year.
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Impressive Q4 Performance
Palantir specializes in software that aids counterterrorism investigations, yet its AIP is now attracting traditional businesses as well.
In Q4, sales soared 36% year-over-year, reaching $827.52 million, compared to $608.35 million during the same period last year. Analysts had predicted sales of around $777.49 million, meaning Palantir exceeded expectations comfortably.
Operational highlights included generating $460 million in cash from operations and $517 million in adjusted free cash flow, translating to margins of 56% and 63%, respectively. The earnings per share (EPS) for Q4 was $0.14, surpassing the forecast of $0.11 and up from $0.08 a year earlier. Notably, Palantir has now met or exceeded EPS consensus for nine consecutive quarters, with an average surprise of 12.72% over the last four quarters.
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Full-Year Highlights
For the full fiscal year 2024, Palantir’s sales increased by 29% to $2.87 billion, up from $2.22 billion in 2023. Furthermore, the company reported annual earnings of $0.41 per share, compared to $0.08 the previous year.
Total cash from operations reached $1.15 billion, with adjusted free cash flow at $1.25 billion, reflecting margins of 40% and 44%, respectively.
Optimistic Revenue Projections
Looking ahead to Q1 of FY25, Palantir anticipates revenue between $858 million and $862 million, significantly above the current Zacks Consensus estimate of $797.85 million, representing a growth of 26%. For FY25, the company expects total sales to range from $3.741 billion to $3.757 billion, also exceeding the consensus forecast of $3.54 billion, which represents a 23% growth target.
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Final Thoughts
The significant increase in Palantir Technologies stock may continue due to its strong Q4 report and promising forecasts. Holding a Zacks Rank #2 (Buy), it is likely that earnings estimates will be revised upward in the near future. Additionally, the company’s balance sheet is strengthening as its cash reserves grow.
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