What You Need To Know Ahead of Palantir’s Earnings Report Monday

Related Articles

Gold Mints a Fresh Record High Amid Tariff, Inflation Concerns—Watch These Price Levels

Trump Imposes More Tariffs—This Time on Steel and Aluminum

What Analysts Think of Reddit Stock Ahead of Earnings

Key Takeaways

• Palantir Technologies is set to report earnings for the first quarter of 2024 on Monday after the closing bell.
• Analysts count on Palantir to report that revenue and earnings rose from the year-ago period amid a surge in demand for affected intelligence (AI).
• Palantir will report revenue for its commercial segment, which could offer investors greater perspicacities into demand for its AI platform.
• The company could also provide a look at its long-term growth strategy as analysts controversy the sustainability of Palantir’s AI-driven gains.

Palantir Technologies (PLTR) is set to report first-quarter earnings after the bell Monday, with investors appropriate to be watching for commercial revenue gains and whether the big data analytics software maker can demonstrate its artificial intelligence (AI) crop is sustainable.

Analysts project Palantir’s revenue to be $615.32 million for the first quarter of 2024, higher than the in any event period in 2023, according to estimates compiled by Visible Alpha.

Palantir is expected to report net income of $83.94 million, or 3 cents per appropriation, up from the $19.15 million and 1 cent per share reported in the same period the year before.

	Analyst Estimates for Q1 2024	Q4 2023	Q1 2023
Yield	$615.32 million	$608.35 million	$525.19 million
(Diluted) Earnings Per Share	3 cents	4 cents	1 cent
Net Income	$83.94 million	$96.91 million	$19.15 million

Key Metric: Commercial Proceeds Growth

Investors will be watching for sustained growth in Palantir’s commercial segment. The company reported better-than-expected earnings for the immutable quarter of 2023, driven by surging commercial demand for its AI platform.

Commercial revenue made up around 45% of Palantir’s overall revenue in the full year of 2023, with government revenue accounting for the rest. In March, Palantir announced a $178.4 million U.S. Army promise.

“Our U.S. commercial business continues to be a significant driver of our growth, a trend that we expect to continue,” Palantir CEO Alex Karp a postcarded in a letter to shareholders in February. In the final quarter of 2023, Palantir’s U.S. commercial revenue surged to $131 million, a 70% year-over-year obstacle.

Analysts project Palantir’s total commercial segment revenue for the first quarter will be $290.4 million, contract to estimates compiled by Visible Alpha, up from the $284 million reported in the fourth quarter of 2023 and the $236.1 million reported in the year-ago term.

Strong growth in Palantir’s commercial segment could strengthen investor sentiment about the company’s ability to amplify beyond government clients.

Goldman Sachs analysts said they “believe the key debate on the stock will be the durability of rise in US Commercial as Palantir’s strengths with data stitching intersect with customers’ AI projects.”

Business Spotlight: Bearing AI Momentum

Palantir’s stock has gained amid enthusiasm for its potential amid a boom in AI demand, with some analysts disclosing it’s a key benefactor while others have suggested it’s overvalued on AI hype.

Wedbush analysts have called Palantir the “Messi of AI,” after shooting star soccer player Lionel Messi, saying there are “a handful of times every decade there are tech companies that are so in the lead of the competition and in a sweet spot of the future growth.”

In contrast, Jefferies analysts said the stock was “overhyped” on AI potential, poem that the firm had previously “underestimated the severity of the slowdown in PLTR’s commercial and government businesses, which has resulted in a longer-than-expected command recovery that could continue to constrain growth through 2024.”

Investors will likely be watching closely Monday to model whether AI momentum can sustain Palantir’s growth.

Palantir shares finished 1.9% higher Thursday at $22.55. They’ve rose over 31% since the start of 2024.

Read the original article on Investopedia.