"When the company reported Q3 earnings on Nov. 3, it beat on the top and bottom lines with EPS of 21 cents versus 17 cents expected, and revenue of $1.18 billion versus $1.09 billion expected. Palantir issued strong guidance, attributing growth to adoption of its AI software platform. Meanwhile, it announced that government sales - which have been essential to Palantir's rise - grew 52% from the same quarter a year ago."
"In September, it was reported that the company agreed to a £1.5 billion defense deal with the U.K. That comes not he back of an announcement in early August that the U.S. Army is consolidating 75 contracts into a single 10-year arrangement with Palantir valued at $10 billion. However, the so-called smart money have been selling the stock in flurries lately, leaving Palantir's institutional ownership at just 56.42%."
Palantir's stock has delivered substantial gains year-to-date and since its October 2022 IPO. Q3 results beat expectations on both EPS and revenue, and the company issued strong guidance tied to adoption of its AI software platform. Government sales grew 52% year-over-year, supported by large defense and federal contract announcements in the U.K. and a consolidated U.S. Army agreement. Institutional investors have trimmed positions, lowering institutional ownership to about 56.42%. The forward P/E of 179.69 signals a high valuation that requires continued earnings growth to justify current prices and future shareholder rewards.
Read at 24/7 Wall St.
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