Palantir Q4 Earnings Preview: Will The Data Software Company Deliver On CEO Expectations For A 'Strong Finish To The Year'?

Palantir Technologies Inc PLTR is set to report fourth-quarter earnings results after the bell. The stock is up approximately 18% since the start of the year, but it's still down more than 40% since February 2022.

Here's what you need to know ahead of the report. 

What To Know: Palantir is expected to report fourth-quarter earnings of 3 cents per share on revenue of $502.25 million. 

Palantir has failed to meet earnings estimates in each of the last four quarters, largely due to the high stock-based compensation the company offers employees. On the other hand, the company has delivered an upside top-line surprise in every quarter since going public via direct listing in late 2020.

In the company's most recent quarter, Palantir missed earnings estimates of 2 cents per share, by a penny, but it turned in quarterly revenue of $477.88 million, exceeding estimates by about $7 million. 

The company has seen strength in its commercial business over the last year, particularly in the U.S. 

U.S. revenue outpaced total revenue growth by close to 10% and commercial revenue in the region grew 53% year-over-year compared to 23% growth in Palantir's government segment. 

Total customers continued to grow quickly last quarter, jumping 66% year-over-year. Total U.S. commercial customers increased 124% over the same period.

Following the print, CEO Alex Karp said, "We beat expectations for revenue growth this quarter and expect to have a strong finish to the year, even in the face of the continued strength of the U.S. dollar."

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Palantir reaffirmed its full-year revenue guidance and raised its outlook for adjusted income from operations. The company forecasted fourth-quarter revenue in a range of $503 million to $505 million, which is ahead of current consensus estimates. 

Palantir has also been supplying its artificial intelligence and machine learning capabilities to soldiers on the front lines in the war that broke out after Russia invaded Ukraine. Such could be fueling increased interest in its products around the globe.

During the fourth quarter, Palantir announced extensions with the Food and Drug Administration (FDA) and the U.S. Army. The company also inked new deals with the Centers for Disease Control and Prevention (CDC), Lockheed Martin Corp LMT, Hertz Global Holdings Inc HTZ, Cardinal Health Inc CAH, Tampa General Hospital, Cleveland Clinic and Posit, among others.

Per the long-term guidance of Karp, Palantir continues to expect annual revenue growth of 30% or greater through 2025.

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PLTR Price Action: Palantir has a 52-week high of $14.86 and a 52-week low of $5.84.

The stock was up 2.53% at $7.71 Monday afternoon ahead of close, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.