Palantir (PLTR) Reports Earnings. What To Expect

Kayode Omotosho /
2023/05/08 4:00 am EDT
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Data-mining and analytics company Palantir (NYSE:PLTR) will be reporting earnings today after market close. Here's what to expect.

Last quarter Palantir reported revenues of $508.6 million, up 17.5% year on year, in line with analyst expectations. Despite the stock rising on the results, it was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.

Is Palantir buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Palantir's revenue to grow 13.3% year on year to $505.9 million, slowing down from the 30.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

Palantir Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.75%.

Looking at Palantir's peers in the data and analytics software segment, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by -0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.62% over the last month. Palantir is down 11.3% during the same time, and is heading into the earnings with analyst price target of $8.6, compared to share price of $7.44.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.