Palantir Stock Plunges After Revised Guidance Falls Short of Forecasts
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Palantir Stock Plunges After Revised Guidance Falls Short of Forecasts

Palantir's Q1 revenue grew 21% YoY, but its full-year guidance disappointed investors, causing the stock to fall over 14%.
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Palantir Technologies Inc. (NYSE: PLTR), a leading data analytics company, announced its first-quarter 2024 earnings on Monday, May 6.

The company reported revenue of $634 million, a 21% increase compared to the same quarter last year, and earnings per share (EPS) of 8 cents, which met analyst expectations. Palantir also achieved a net income of $105.5 million, representing a 17% rise from the previous year.

However, the stock fell after its guidance was lower than expected. At the time of writing, Palantir was trading at $21.66, down 14.09% from the market open.

Palantir Reports Segment Revenue and Customer Growth

The company’s revenue growth was driven by strong performance in both its commercial and government segments. Commercial revenue grew by 27% to $299 million, while government revenue increased by 16% to $335 million, with the U.S. government contributing $257 million to the total government revenue.

Palantir also saw a 42% jump in customers compared to the same quarter last year, indicating a growing demand for its data analytics solutions.

Palantir Ups Guidance, But It’s Not Enough

Despite the positive earnings, Palantir’s full-year revenue forecast fell short of analyst expectations. The company raised its full-year revenue guidance to between $2.68 billion and $2.69 billion, up from its previous estimate of $2.65 billion to $2.67 billion.

However, this was below the consensus estimate of $2.71 billion. Palantir also expects its adjusted operating income to be between $868 million and $880 million for the full year.

For the second quarter, the company anticipates revenue to be between $649 million and $653 million, with adjusted income from operations guided between $209 million and $213 million.

PLTR Plunges After Guidance Announcement

Following the earnings announcement, Palantir’s stock price fell over 6% in extended trading as the company’s guidance failed to meet investor expectations.

As of May 7, 2024, at the time of writing, Palantir’s stock price was $21.66, down 14.09% following the earnings announcement, despite a year-to-date return of +26.12%. Analysts, such as those from Goldman Sachs (NYSE: GS), expressed concerns about the sustainability of Palantir’s U.S. commercial growth and its ability to maintain or accelerate its revenue growth.

Do you think the market is overreacting to Palantir’s numbers? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.