Palantir Shares Soar to Record High on Strong Q3 Results
The data analytics software giant, Palantir, has sent shockwaves through the market with its impressive third-quarter earnings report. On Tuesday, the company’s shares skyrocketed 23%, reaching an all-time high of $51.19, surpassing its previous record of $45.14 set just last week.
Revenue and Earnings Beat Expectations
Palantir’s revenue jumped 30% year-over-year to $726 million, outpacing the $701 million average analyst estimate. The company’s adjusted earnings per share of 10 cents also exceeded expectations, beating the average estimate of 9 cents.
US Government Performance Drives Growth
According to analysts at Deutsche Bank, the impressive results were driven by better-than-anticipated US Government performance, fueled by growing demand for artificial intelligence tools. Palantir’s expertise in complex data integration and reputation for data security have positioned it as a leader in the industry.
Net Income Soars
Palantir’s net income surged to $143.5 million, or 6 cents per share, up from $71.5 million, or 3 cents per share, in the same quarter last year.
Fourth-Quarter Guidance Exceeds Expectations
The company has set its sights on a strong fourth quarter, projecting revenue of $767 million to $771 million. This exceeds the $741.4 million average analyst estimate.
Commercial Revenue Targets
Palantir is targeting more than $687 million in U.S. commercial revenue for the year, representing about 24% of its total revenue.
Analysts Weigh In
Bank of America has bumped up its price target from $50 to $55, maintaining its buy rating. Analysts believe that Palantir’s AI-enabled products will continue to drive growth, citing the company’s “moat as the differentiated agnostic AI-enabler” and its compounding unit economics.
As Palantir continues to push the boundaries of data analytics and artificial intelligence, investors are taking notice. With its shares reaching new heights, it’s clear that this company is on a roll.
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