Shares of big data analytics company Palantir (PLTR) soared 14% in after-hours trading after it reported stellar fourth-quarter results and beat guidance. Earnings per share came in at $0.14, which beat analysts’ consensus estimate of $0.11 per share. Sales increased by 36% year-over-year, with revenue hitting $828 million. This also beat expectations of $775.91 million.
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Sales growth was driven by the firm’s U.S. Commercial segment, as revenue saw an impressive year-over-year increase of 64% to $214 million. On the U.S. government side, revenue grew by 45% from the previous year, coming in at $343 million. In terms of overall clientele, there was a notable 43% year-over-year growth.
Palantir Provides Guidance for 2025
Looking forward, management has provided the following guidance for 2025:
- Q1 revenue between $858 million and $862 million versus estimates of $799.4 million
- Q1 Income from operations of $354 million to $358 million compared to expectations of $298.1 million
- FY25 revenue between $3.741 billion and $3.757 billion versus estimates of $3.526 billion
- FY25 Income from operations of $1.551 billion to $1.567 billion compared to expectations of $1.336 billion
As you can see, guidance was much better than expected, which, when combined with the solid Q4 results, is what contributed to the stock’s after-hours move.
What Is the Prediction for PLTR Stock?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on two Buys, nine Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 401% rally in its share price over the past year, the average PLTR price target of $52.57 per share implies 37.3% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
