Why Palantir Technologies Shares Are Exploding Higher Following Q4 Earnings

Palantir Technologies Inc PLTR shares are higher by 14.23% to $8.70 in after-hours trading Monday after the company reported better-than-expected fourth-quarter financial results. The company also issued first-quarter and FY23 guidance. So what should traders and investors know?

Palantir Earnings Recap

Palantir Technologies reported quarterly earnings of 4 cents per share, which beat the analyst consensus estimate of 3 cents. The company posted quarterly sales of $508.62 million which beat the analyst consensus estimate of $502.25 million by 1.3%. The sales figure is a 17.5% increase over sales of $432.87 million in the same period last year.

See Also: Trading Strategies for Palantir Stock Before And After Q4 Earnings

Palantir reported its first quarter of positive GAAP net income, as well as GAAP EPS of 1 cent, contributing to the significant move to the upside after-hours.

Palantir sees first-quarter 2023 revenue in the range of $503 million-$507 million versus the analyst consensus estimate of $520 million. The company also sees FY23 revenue in the range of $2.18 billion-$2.23 billion versus the analyst consensus estimate of $2.29 billion.

The company projects positive GAAP net income in FY23.

What Else?

"With this result, Palantir is profitable. This is a significant moment for us and our supporters," said Alex Karp, co-founder and chief executive officer of Palantir Technologies.

Other highlights from FY22 include:

• Total revenue grew 24% year-over-year to $1.91 billion
  • U.S. revenue grew 32% year-over-year to $1.16 billion
• Commercial revenue grew 29% year-over-year to $834 million
  • U.S. commercial revenue grew 67% year-over-year to $335 million
• Government revenue grew 19% year-over-year to $1.07 billion
  • U.S. government revenue grew 22% year-over-year to $826 million

According to data from Benzinga Pro, PLTR has a 52-week high of $14.86 and a 52-week low of $5.84.

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