Palantir Technologies (NYSE: PLTR) stock plunged in early trading hours Tuesday as the company’s annual sales outlook failed to meet investor expectations.
Palantir Technologies (PLTR) recently reported better-than-expected earnings and revenue for the first quarter of 2024, driven by strong performance in its commercial segment. Still, the stock plummeted over 13% in early trading Tuesday, as investors reacted cautiously to the company’s conservative 2024 revenue guidance.
In the first quarter, Palantir recorded revenue of $634.34 million, marking a 21% increase from the year-ago period and beating analysts’ estimates. The company also reported a net income of $105.53 million, up 17% year-over-year, with diluted earnings per share (EPS) reaching 4 cents, compared to 1 cent in the previous year. Both earnings metrics beat analysts’ forecasts, per estimates compiled by Visible Alpha.
The strength in Palantir’s commercial segment was particularly noteworthy, with revenue growing by 27% year-over-year to $299 million, beating analysts’ estimates of $290.4 million. Meanwhile, government revenue, which constitutes the majority of the company’s sales, reached $335 million, marking a 16% increase from last year, with the U.S. government contributing $257 million to the total government revenue figure.
Despite the positive first-quarter results, Palantir’s guidance for the full year left investors wanting more. The company raised its full-year revenue guidance marginally to between $2.68 billion and $2.69 billion, above the previously projected range of $2.65 billion to $2.67 billion.
Palantir (NYSE: PLTR) Stock Reaction
As of 09:48 a.m. (Eastern Time) Tuesday, PLTR stock traded at $21.86, marking a 13.11% decrease compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
