Shares of big data analytics company Palantir (NYSE:PLTR) sank in after-hours trading after it reported its first-quarter results. Earnings per share came in at $0.08, which was in line with analysts’ consensus estimates. Sales increased by 20.8% year-over-year, with revenue hitting $634.33 million. This beat expectations by more than $16 million.
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Sales growth was driven by the firm’s Commercial segment, as revenue saw an impressive year-over-year increase of 27% to $299 million. The U.S. commercial sector particularly stood out, with a 40% growth rate and $150 million in revenue. On the government side, revenue grew by 16% from the previous year, coming in at $335 million. In terms of clientele, there was a notable 42% year-over-year growth.
Looking forward, management now expects revenue and adjusted income from operations for Q2 2024 to be in the ranges of $649 million to $653 million and $209 million to $213 million, respectively. For Fiscal Year 2024, revenue is anticipated between $2.677 billion to $2.689 billion, with adjusted income from operations of $868 million to $880 million.
What Is the Prediction for PLTR Stock?
Although Palantir had a solid quarter, share prices still fell. This is likely due to Wall Street’s overall negative sentiment. In fact, analysts have a Moderate Sell consensus rating on PLTR stock based on two Buys, five Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 226% rally in its share price over the past year, the average PLTR price target of $19.67 per share implies 22% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
