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Palantir Shares Edge Lower On Earnings Miss, Revenue Beat

Sam Boughedda trader
Updated 7 Nov 2022

Buy Palantir Shares Your Capital Is At Risk

Key points:

  • Palantir reported Q3 earnings
  • It missed profit expectations but beat revenue estimates
  • Palantir shares edged lower premarket

Palantir (NYSE: PLTR) shares have fallen slightly premarket after the company reported earnings before the open Monday, missing profit but topping analyst expectations.

The software company posted earnings of $0.01 per share on revenue of $477.9 million, with consensus expectations of earnings of $0.02 per share on revenue of $474.5 million. Revenue grew 22% year-over-year, while US commercial revenue grew 53% year-over-year, and US government revenue grew 23%.

The company said its customer count grew 66% year-over-year and 11% quarter-over-quarter, while US commercial customer count increased 124%, from 59 customers in the third quarter of 2021 to 132 customers in Q3 2022.

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Palantir shares are down over 1% premarket at the time of writing. Despite previous investor optimism regarding the company, its shares have declined more than 69% in the last 12 months and over 56% in 2022.

“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,” said Alexander Karp, Co-Founder and Chief Executive Officer of Palantir Technologies.

Looking ahead, Palantir reaffirmed its revenue guidance for the year. The company sees revenue between $1.9 billion and $1.902 billion for the year despite a negative $6 million currency impact since its prior quarter's guidance. However, it raised its outlook for adjusted income from operations to between $384 million and $386 million.

For the fourth quarter, Palantir expects revenue to be between $503 million and $505 million, below expectations of $505.9 million.

On October 20, Morgan Stanley analyst Keith Weiss cut the firm's price target on Palantir to $10 from $11, keeping an Equal Weight rating on the shares. Weiss told investors in a note at the time that he and the rest of Morgan Stanley's North American Software team are reducing estimates for the infrastructure software group “again” on the view that the weaker environment will persist through 2023.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.