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Palantir Reports Earnings Tomorrow. What To Expect


Kayode Omotosho /
2022/02/16 6:03 am EST
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Data-mining and analytics company Palantir (NYSE:PLTR) will be reporting results tomorrow morning. Here's what to expect.

Last quarter Palantir reported revenues of $392.1 million, up 35.5% year on year, beating analyst revenue expectations by 1.51%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

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 29.7% year on year to $418 million, slowing down from the 40.4% 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 3.76%.

Looking at Palantir's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Commvault Systems (NASDAQ:CVLT) delivered top-line growth of 7.65% year on year, beating analyst estimates by 3.91% and Confluent (NASDAQ:CFLT) reported revenues up 70.5% year on year, exceeding estimates by 9.22%. Commvault Systems traded down 1.15% on results, Confluent was down 21.8%. Read our full analysis of Commvault Systems's results here and Confluent's results here.

There has been a positive change in sentiment among investors in the software segment, with the stocks up on average 5.07% over the last month. Palantir is down 6.07% during the same time, and is heading into the earnings with analyst price target of $24.9, compared to share price of $14.06.

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.