Palantir (New York Stock Exchange: PLTR) Investors enjoyed the proceedings after the market opened on Tuesday. The big data specialist’s fourth-quarter results beat expectations, sending stocks soaring.
The company posted revenue of $508.62 million in the quarter, up 17.5% year-over-year and beating Street Phone by $3.64 million. By segment, government revenues increased 23% year-on-year to $293 million, while commercial revenues increased 11% to $215 million. $0.04 in the end, adjusted. EPS beat the analyst’s forecast of $0.03.
However, Palantir was disappointed with its sales prospects. Earnings for the first quarter are expected to range from his $503 million to his $507 million, below the consensus $520.3 million. Full-year earnings are estimated to range from $2.18 billion to he’s $2.23 billion. The Street had him asking for $2.29 billion.
Nevertheless, investors happily ignored the failure and focused on improving the company’s profitability profile. Raymond James analyst Brian Gesuale agrees, saying the improvement should not be underestimated. With GAAP EPS of $0.01, reflecting his GAAP earnings for the first time in almost 20 years, and expecting 2023 to be its first profitable year, the company said a “surprise milestone” along with a top-line beat would “make a dent.” It should be attached. In the bearish case for PLTR, analysts say. Additionally, Gesuale believes that Palantir’s unique attributes put it well-positioned to deal with the macro environment.
“As global geopolitical tensions continue and macro uncertainties remain, non-cyclical government budget-linked companies like PLTR (56% of sales) will be better positioned to enhance performance stability. We think we’re in a good position,” the analyst explained. “Historical contracting track record, technical capabilities and culture align with Western governments uniquely positioned to grow government business from $1 billion to $2 billion in about three years, regardless of macro circumstances. We believe this will also encourage a revision of forward-looking estimates across the street that have generally underestimated the government’s opportunities.”
Further emphasizing the company’s positive cash flow, path to profitability and what appear to be “reasonable” expectations, Gesuale reiterated its strong buy rating and $15 price target for PLTR stock. What are the advantages for investors? A 54% increase from current levels. (To see Gesuale’s achievements, click here)
But Gesuale’s positive outlook is an anomaly in the current street. Ratings are divided into 1 buy, 4 hold, and 5 sell, all culminating in a moderate sell consensus rating. Given the average target of $7.56, we expect the stock to fall 12.5% over the next few months. (look Palantir stock price forecast)
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Disclaimer: The opinions expressed in this article are those of the featured analyst only. This content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.