Palantir Technologies (PLTR) reported third-quarter earnings that met estimates while revenue topped expectations. PLTR stock fell despite the company adding more customers than expected as government revenue growth missed.
X
Denver-based Palantir released the September-quarter earnings report before the market open on Tuesday. Palantir stock fell 6.4% to near 25 in early trading on the stock market today.
Palantir earnings were 4 cents per share on an adjusted basis.
Revenue jumped 36% to $392 million, the maker of data analytics software said.
Analysts estimated Palantir earnings of 4 cents a share on revenue of $385 million for the quarter that ended Sept. 30.
PLTR Stock: Government Revenue Growth Light
Palantir’s government revenue rose 34% to $218 million from the year-earlier period, missing estimates of $235.9 million. Commercial revenue rose 37% to $174 million, topping estimates of $148.6 million.
Palantir said it added 34 net new customers in the September quarter, up from 20 in the second quarter. It ended the quarter with 203 customers, topping estimates of 180.
For the current quarter ending in December, Palantir forecast revenue of $$418 million. Analysts polled by FactSet had projected fourth-quarter revenue of $402 million.
Heading into the earnings report, Palantir stock had an entry point of 29.39. PLTR stock had gained 12% in 2021.
The Palantir earnings report comes amid the enterprise software maker’s growing investments in special purpose acquisition companies. SPACs raise money in an initial public offering with the purpose of making acquisitions.
Government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. In addition, the software maker aims to expand into the health care, energy and manufacturing sectors.
PLTR stock holds a Relative Strength Rating of 83 out of a best possible 99, according to IBD Stock Check-up.
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.
IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
How This IBD Tool Simplifies The Search For Top Stocks
