Shares of big data analytics company Palantir (PLTR) surged 16% in after-hours trading after it reported stellar second-quarter results and raised guidance. Earnings per share came in at $0.09, which beat analysts’ consensus estimate of $0.08 per share. Sales increased by 27.2% year-over-year, with revenue hitting $678.13 million. This beat expectations of $652.4 million.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Sales growth was driven by the firm’s Commercial segment, as revenue saw an impressive year-over-year increase of 33% to $307 million. The U.S. commercial sector particularly stood out, with a 55% growth rate and $159 million in revenue. On the government side, revenue grew by 24% from the previous year, coming in at $278 million. In terms of overall clientele, there was a notable 41% year-over-year growth.
Looking forward, management raised guidance and now expects revenue and adjusted income from operations for Q3 2024 to be in the ranges of $697 million to $701 million and $233 million to $237 million, respectively. For Fiscal Year 2024, revenue is anticipated between $2.742 billion and $2.750 billion, with adjusted income from operations of $966 million to $974 million. These figures all beat analysts’ consensus estimates.
What Is the Prediction for PLTR Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on three Buys, five Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 32% rally in its share price over the past year, the average PLTR price target of $22.42 per share implies 5.6% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
