Palantir (PLTR) Reports Q1: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2022/05/06 7:02 am EDT

Data-mining and analytics company Palantir (NYSE:PLTR) will be reporting results next Monday before market hours. Here's what to look for.

Last quarter Palantir reported revenues of $432.8 million, up 34.3% year on year, beating analyst revenue expectations by 3.54%. Despite the stock dropping on the results, it was still a decent quarter for the company, with a strong top line growth and a meaningful improvement in gross margin.

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 29.9% year on year to $443.5 million, slowing down from the 48.7% 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 3.72%.

Looking at Palantir's peers in the data and analytics software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Amplitude delivered top-line growth of 46.6% year on year, beating analyst estimates by 4.36% and Commvault Systems reported revenues up 7.63% year on year, exceeding estimates by 1.96%. Amplitude traded up 6.2%, and Commvault Systems traded flat on the results. Read our full analysis of Amplitude's results here and Commvault Systems's results here.

Technology stocks have been hit hard on fears of higher interest rates and software stocks have not been spared, with share price down on average 17% over the last month. Palantir is down 25.9% during the same time, and is heading into the earnings with analyst price target of $15.9, compared to share price of $10.18.

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.