/Palantir%20(PLTR)%20by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Palantir Technologies Inc. (PLTR), headquartered in Denver, Colorado, is a company that builds and deploys software platforms to support the intelligence community in counterterrorism investigations and operations. Valued at $159.4 billion by market cap, the company manages software deployment across environments and offers access to large language models (LLMs) for analyzing both structured and unstructured data. The leading builder of operating systems is expected to announce its fiscal fourth-quarter earnings for 2024 on Monday, Feb. 3.
Ahead of the event, analysts expect PLTR to report a profit of $0.07 per share on a diluted basis, up 133.3% from $0.03 per share in the year-ago quarter. The company beat or matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect PLTR to report EPS of $0.21, up 162.5% from $0.08 in fiscal 2023. Its EPS is expected to rise 42.9% year over year to $0.30 in fiscal 2025.
PLTR stock has considerably outperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 338% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 27.1% gains over the same time frame.
PLTR’s success can be attributed to its focus on the operational layer of AI and connecting digital assets to real-world applications. Its Artificial Intelligence Platform (AIP) boot camps, assisting clients in transitioning from proof-of-concept to full production, has driven strong growth and demand in commercial and government sectors. Recent innovations like the AIP have facilitated rapid penetration into the private sector, with collaborations with major tech players like Amazon.com, Inc. (AMZN), and Microsoft Corporation (MSFT) expanding its market reach. Moreover, strong customer demand, a robust sales pipeline, and the acquisition of new customers have also contributed to PLTR's recent outperformance.
On Nov. 4, PLTR reported its Q3 results, and its shares closed up more than 23% in the following trading session. Its revenue of $725.5 million, beat Wall Street forecasts of $703.7 million. The company’s adjusted EPS was $0.10, surpassing analyst estimates of $0.09.
Analysts’ consensus opinion on PLTR stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, two advise a “Strong Buy” rating, eight suggest a “Hold,” two give a “Moderate Sell,” and five recommend a “Strong Sell.” While PLTR currently trades above its mean price target of $42.80, the Street-high price target of $80 suggests an upside potential of 14.3%.
