"When the company reported Q2 earnings on Aug. 4, it announced that revenues saw year-over-year growth of 48% and topped $1 billion in quarterly revenue for the first time ever, while U.S. government revenues rose 53% from the year-ago period to $426 million. Palantir beat on earnings with 16 cents per share versus Wall Street's expectations of 14 cents per share. The company also upped its full-year guidance, forecasting revenues between $4.142 billion and $4.150 billion, up from its previous forecast of $3.89 billion to $3.90 billion."
"While the stock's forward P/E ratio of 213.44 can be concerning, Palantir's federal contracts and aerospace ties are expected to continue fueling growth. While earnings are rear-facing, the emerging trends seen in the company's Q1 results can serve as a foundation for further rewards for shareholders. In the first quarter, Palantir saw year-over-year revenue growth of 39%. U.S. commercial business surpassed a $1 billion run rate, good for 71% year-over-year growth. Meanwhile, its U.S. government revenue grew 45% year-over-year."
Shares rose about 133% year-to-date and 1,802.17% since the October 2022 IPO, despite recent short-term declines. The company secured a £1.5 billion U.K. defense deal and a consolidated U.S. Army arrangement valued at $10 billion. Institutional ownership fell to 53.78% after sizable reductions by major firms such as JPMorgan and T. Rowe Price. Q2 revenue grew 48% year-over-year, exceeded $1 billion, U.S. government revenue rose 53% to $426 million, EPS beat expectations at $0.16, and full-year guidance was raised. The forward P/E stands at 213.44, implying elevated valuation risk.
Read at 24/7 Wall St.
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