Palantir Technologies (PLTR) will release its fiscal Q2 financials on August 5. Analysts expect to report earnings of $0.08 per share, up 40% from the prior-year quarter. Meanwhile, analysts expect revenues of $653.23 million, reflecting a 22% year-over-year increase, according to TipRanks’ data.
Palantir Technologies is a software company that specializes in big-data analytics, serving institutions, private enterprises, and non-profit organizations. PLTR’s stock has gained by nearly 52% year-to-date, driven by the growing demand for AI applications.
Interestingly, Palantir missed EPS estimates only once out of the last four quarters.
Insights from the TipRanks Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bullish analysts believe that Palantir is seeing strong demand from both commercial and government sectors, with its AI technologies driving efficiencies and operational benefits. They remain impressed with the company’s stock performance and believe that PLTR is well-positioned to capitalize on the $1 trillion AI spending wave.
Meanwhile, bears remain concerned about the company’s high valuation relative to its peers. They are also worried about the inconsistent revenues from Palantir’s government contracts.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 13.57% move in either direction.
Is Palantir Technologies a Good Stock to Buy?
Overall, the Street has a Hold consensus rating on PLTR, alongside an average price target of $22.42. However, analysts’ views on the stock are likely to change once the company reports its Q2 earnings tomorrow.
Bottom Line
Analysts expect Palantir’s top and bottom lines to improve year-over-year in Q2, driven by growing opportunities in the AI space. Nonetheless, they remain concerned about the company’s high valuation and prefer to remain on the sidelines for now.
