PLTR : Q1 Profit Prediction - Boom or Bust?
$Palantir Technologies Inc.(PLTR)$
What To Know Ahead of PLTR's Earnings ?
Palantir Technologies (PLTR) is set to report first-quarter earnings after the bell on Mon,6 May 2024.
Investors would be watching for PLTR:
- Commercial revenue gains.
- Whether it can show that its artificial intelligence (AI) growth is sustainable.
Q1 2024 Earnings Expectations.
Wall Street's expectations
- Revenue: $615.32 million vs $525.19 (Q1 2023); gain of +17.16% YoY.
- Earnings per share - diluted (EPS): $0.03 per share vs $0.01 per share, gain of +300% YoY.
- Net income: $83.94 million vs $19.15 million; gain of +338.33% YoY.
Key Metric: Commercial Growth.
The main grip Wall Street has with PLTR is they have always maintained that PLTR will not be able to survive if not for the military contracts.
In Q4 2023, PLTR reported a better-than-expected earnings, driven by surging commercial demand for its AI platform.
As such, they will be watching for sustained growth in Palantir's commercial segment, in Q1 2024 again.
So far, commercial revenue constitutes 45% of Palantir's total revenue in FY 2023, with government revenue accounting for the rest.
In March 2024, Palantir announced a $178.4 million US Army contract.
On 03 Feb 2024, in a letter to shareholders, PLTR CEO - Alex Karp wrote that:
- PLTR’s US commercial business continues to be a significant driver of growth.
- A trend that is expected to continue.
- In Q4 2023, Palantir's US commercial revenue has surged to $131 million, a +70% YoY gain.
Based on estimates compiled by Visible Alpha, analysts project Palantir's total commercial segment revenue for Q1 2024 will be $290.4 million vs $236.1 million YoY vs $284 million (Q4 2024).
A strong growth in Palantir's commercial segment could strengthen investors’ sentiments about the company's ability to expand beyond government clients.
Goldman Sachs analysts think:
- The main question about Palantir is whether their US commercial business can keep growing.
- This is because Palantir's skills in combining different data sources (data stitching) could be a big help for companies working on AI projects.
My viewpoints: (mine & mine only)
- Palantir IPO on 20 Sep 2020; right smack during the covid pandemic.
- Overtime, it has “proven” that it is able to survive the pandemic and come out at the other end.
- Both its earnings and revenue have been growing since Q3 2022.
- Apart from that, Palantir has strong secular tailwinds, as the Artificial Intelligence & Money Laundering market is expected to grow rapidly due to the exponential increase in data harvested by organizations.
- With products targeting both commercial and governmental clients, Palantir has a distributed top line, with non-cyclical governmental revenue insulating the overall top line during lean times.
- Palantir’s focus on modular sales could lead to substantially more commercial clients, which it could subsequently upsell.
- Does it matter if PLTR has government contracts only? Money does not discriminate, no?
- In fact, government contracts are more niche and once a company jams a foot in its doorway, it’s a secure contract to have, no?
- Do you think Palantir will surprise market again with another stellar report card ??
- Do you think it is worthy investment in this largely AI driven apps company?
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Haha a really interesting stock. Can be a good chance
Selling 1/2 my position. Will buy back on dips. Didn’t catch the top.
Pls help to "Re-post". Tks! Rating is important (to me).
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