Palantir Technologies (NYSE: PLTR) has confirmed that it will release its fourth-quarter earnings report on Monday, February 14, 2022, after market close.
What to look for
The Denver-based software data management company specializes in platforms for securing and managing data for clients. The platform enables the client to answer complicated queries easily using huge throngs of data. Its main products include Apollo, Foundry, and Gotham. In the past quarter, the company grew its customer base, and that trend is expected to go on in Q4 2021.
Earnings: Stockearning’s Estimated EPS for the fiscal Q4 2021 is expected to be $0.04 per share. In the same quarter a year ago, the company had earnings per share of $0.07. Palantir produced an earnings surprise of 33.33% in Q3 2021 with an EPS of $0.04. Historical EPS Performance shows that in the past 12 quarters, the company has topped EPS estimates 3 times (60%), matched twice (40%), and never missed (0%).
Revenue: In the third quarter, the data analytics software maker reported revenue of $392 million, representing a YoY increase of 36%. Analysts had predicted that the company would post revenue of $385 million.
Stock movement: PLTR shares have lost 46.9%% since the company released its third-quarter earnings. Interestingly, PLTR shares have been UP 3 times out of the past 4 quarters. So, the historical price reaction suggests a 75% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to Stockearning’s algorithm, the predicted first-day move is 9%, while the predicted move on the seventh day is 16%.
What analysts are saying
Jefferies analyst Brent Thill slashed his price target on the stock from $24 to $21 but maintained a Buy rating on the stock ahead of the Q4 earnings release. When looking ahead to the first quarter of fiscal 2022, revenue guidance is up 30% YoY after Palantir generated growth of 36% in Q3, according to Thill, who also adds that sales growth comp gets progressively difficult, and seasonality is likely to have an influence. Palantir "has the worst investor sentiment" of the Infrastructure Software stocks he covers, but Thill believes it can generate 30 percent-plus compound yearly growth with commercial progress inching upward.
Deutsche Bank analyst Brad Zelnick slashed his price target on PLTR from $25 to $18 but maintained a Hold rating on the shares. The analyst sees the software sector fundamentals improving in 2022 "while having a healthy respect for the market and macro backdrop." He believes the sector sets up well going forward but advises a more holistic approach with higher value sensitivity than in previous years.
Credit Suisse analyst Phil Winslow commenced coverage of Palantir with a Hold rating and set a price target of $25. The analyst said he believes PLTR offers a unique "converged data fabric" that allows companies to operationalize diverse data sources, and he believes Palantir Foundry has great commercial potential with large enterprises. On the other hand, Palantir depends on huge deals with a few customers, which Winslow believes will continue to cause financial inconsistency.
Related News
Amgen Inc. (NASDAQ: AMGN) Earnings Expectations, Q4 2021 EPS of $4.11 On Revenue of $6.91 Billion
Bristol-Myers Squibb Company (NYSE: BMY) Expects Q4 2021 EPS of $1.84 on revenue of $12 Billion