Shares of big data analytics company Palantir (PLTR) soared 13% in after-hours trading after it reported stellar third-quarter results and raised guidance. Earnings per share came in at $0.10, which beat analysts’ consensus estimate of $0.09 per share. Sales increased by 30% year-over-year, with revenue hitting $726 million. This also beat expectations of $705.11 million.
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Sales growth was driven by the firm’s U.S. Commercial segment, as revenue saw an impressive year-over-year increase of 54% to $179 million. On the U.S. government side, revenue grew by 40% from the previous year, coming in at $320 million. In terms of overall clientele, there was a notable 39% year-over-year growth.
Palantir Provides Guidance for 2024
Looking forward, management has provided the following guidance for the rest of 2024:
- Q4 revenue between $767 million and $771 million versus estimates of $744 million
- Q4 Income from operations of $298 million to $302 million compared to expectations of $254.7 million
- FY24 revenue between $2.805 billion and $2.809 billion versus estimates of $2.76 billion
- FY24 Income from operations of $1.054 billion to $1.058 billion compared to expectations of $970 million
As you can see, guidance was much better than expected, which, when combined with the solid Q3 results, is what contributed to the stock’s after-hours move.
What Is the Prediction for PLTR Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on four Buys, seven Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 124% rally in its share price over the past year, the average PLTR price target of $27.85 per share implies 33.15% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
