Palantir Technologies (PLTR) shares surged higher Tuesday after the data analytics group posted better-than-expected fourth quarter earnings and forecast its maiden annual profit for its current fiscal year.
Palantir, which is heavily involved with the defense sector, in part through its work with the Central Intelligence Agency, posted adjusted earnings of 4 cents per share on revenues of $508.6 million, an 18% increase from the same period last year that topped Street forecasts. Around $215 million of that total was generated from commercial clients, with $293 million coming from its government business.
Business investment in AI, the company said, will support earnings growth over the current financial year with revenues likely coming in between $2.18 billion and $2.23 billion, with first quarter sales of around $505 million. Adjusted income from operations was forecast between $481 million and $531 million, Palantir said.
“A threshold has been crossed, and this is the start of our next chapter,” said CEO Alex Karp. “We expect to generate a profit for the current fiscal year, our first profitable year in the history of our company.”
""This is a world that is dangerous, that needs AI-driven and, in general, software-driven weaponry, and no other company in the world has been focused on this for the last 20 years, and we are," he added on a conference call with investors late Monday.
Palantir shares were marked 14.8% higher in early Tuesday trading to change hands at $8.72 each, a move that would trim the stock's six-month decline to around 11.2%.
