Palantir Technologies on Monday reported September-quarter earnings that missed views while revenue edged by Wall Street targets. PLTR stock plunged as its fourth-quarter revenue outlook came in below expectations amid the impact of currency exchange rates.
Denver-based Palantir reported second-quarter earnings before the market open. Palantir stock sank 11.5% to close at 7.02 on the stock market today.
In the Palantir earnings report for the three months ending Sept. 30, the software maker said it earned one cent per share on an adjusted basis.
Also, revenue rose 22% to $478 million, the maker of data analytics software said.
Meanwhile, analysts expected Palantir earnings of 2 cents a share on revenue of $474.7 million.
PLTR Stock: Commercial Growth Light
In the September quarter, commercial revenue rose 17% to $204 million, missing views. Government revenue climbed 26% to $274 million, topping estimates. Analysts had projected commercial revenue of $224 million and government revenue of $260 million.
"Softness in Europe and a currency exchange rate drag resulted in commercial revenue growth decelerating to 17% in Q3 from 46% in Q2," said Brian White, analyst at Monness, Crespi, Hardt & Co., in a report.
For the current quarter ending in December, Palantir forecast revenue of $504 million at the midpoint of guidance. The company said currency exchange rates will lower revenue by an estimated $5 million.
Analysts polled by FactSet had projected third-quarter revenue of $506.8 million.
PLTR stock has retreated some 56% in 2022, according to IBD Stock Check-up.
Palantir Stock: SPACs Boost Revenue
Heading into the Palantir earnings report, the software stock had a Relative Strength Rating of only 25 out of a best-possible 99.
Government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. In addition, the software maker aims to expand into the health care, energy and manufacturing sectors.
To boost revenue, Palantir had invested in special purpose acquisition companies, or SPACs. The SPACs raise money in an initial public offering with the purpose of acquiring a company or companies.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
