Palantir Stock Earnings: PLTR up 15% in premarket on revenue bump

Palantir Technologies (PLTR) stock surged nearly 29% higher late Monday after the data mining firm reported revenue out ahead of analyst expectations. Palantir had first-quarter sales above $525 million, whereas Wall Street consensus was gunning for $506 million. PLTR stock is now up closer to 15% at $9 early Tuesday as the exuberance subsides somewhat.

The market is in selling mode early Tuesday due to less than stellar results from Tyson Foods (TSN) and Catalent (CTLT), with both stocks moving back to their covid lows of three years ago. Dow, S&P 500 and NASDAQ 100 futures are all trading down about 0.4% in Tuesday’s premarket.

Palantir stock news: Guidance raise boosts confidence

For the first quarter, Palantir had adjusted earnings per share (EPS) of $0.05, which beat the average estimate by a penny.

“We were profitable again this quarter [...] and we now anticipate that we will remain profitable each quarter through the end of the year,” said CEO Alexander Karp in a statement to shareholders. 

Karp added that Palantir’s Artificial Intelligence Platform (AIP) is expected to aid in the growth of its customer base. Palantir grew its customers by 7% QoQ to 391 and 41% YoY. 

GAAP net income of $0.01 per share or $17 million means that Palantir has just barely turned in two consecutive quarters with positive GAAP income. Before this Palantir was fairly infamous for being unprofitable after two decades in business.

Though the AIP product remains in development, management expects its ability to introduce data collection software to AI-inflected large language models will become another large revenue stream for the company.

Currently, Gotham (aimed at military, intelligence and government institutions) and Foundry (geared more toward commercial uses) ”enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations.” Apollo is another platform that allows Palantir customers to configure their own data software systems.

These three data collection and collating platforms presented Palantir with 18% YoY revenue growth. Government revenue rose 20% YoY to $289 million, while commercial revenue growth increased 15% over the same period.

Management closed $397 million worth of contracts in the quarter, which was a 60% climb from last year. During the quarter, 64 deals closed during the quarter amounted to at least $1 million in value.

Palantir stock forecast

Palantir stock has pushed its way back into the $8.65 to $9.35 support/resistance window. This price range provided support during the summer of 2022 and then witnessed several occasions of resistance pressure in the aftermath.

PLTR shares seem to be settling near the resistance point faced on April 17 and 18 around $9 once again. February 2 saw PLTR lose steam at $9.20, and we have already mentioned the top of the range at $9.35. This means there are quite a few spots for traders to book profits nearby overhead, which could make a renewed rally unlikely. Still, a daily close above $9.35 would allow bulls to make another run at the $10.10 to $10.37 resistance zone that placed a cap on price action again last summer.

PLTR daily chart