PLTR Earnings: Palantir Rises 13% After Raising Guidance

Shares of big data analytics company Palantir (PLTR) rose 13% in after-hours trading after the company reported stellar third-quarter results and raised guidance. Earnings per share came in at $0.10, beating analysts' consensus estimate of $0.09 per share. Revenue increased 30% year-over-year, reaching $726 million. This also beat expectations of $705.11 million.

The revenue growth was driven by the company's U.S. commercial segment, which reported an impressive 54% year-over-year increase in revenue to $179 million. On the U.S. government side, revenue increased 40% year over year to $320 million. In terms of total customers, there was a remarkable growth of 39% year-on-year.

Palantir provides guidance for 2024

Looking forward, management has provided the following guidance for the remainder of 2024:

Fourth-quarter revenue is in the range of $767 million to $771 million, versus estimates of $744 million
Q4 operating profit of $298 million to $302 million compared to expectations of $254.7 million
FY24 revenue is in the range of $2.805 billion to $2.809 billion versus estimates of $2.76 billion
FY24 operating profit 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 combined with solid third-quarter results contributed to the stock's after-hours movement.

What is the forecast for PLTR stock?

As for Wall Street, analysts have a consensus rating on PLTR stock at Hold, based on four buys, seven holds, and six sells over the last three months, as shown in the chart below. After a 124% increase in the share price over the past year, the average PLTR price target of $27.85 per share implies a downside risk of 33.15%. However, it's important to note that estimates are likely to change following today's earnings report.