Palantir Shares Drop 3.5% as EPS Forecast Jumps 123% and Revenue Seen at $1.54B
Palantir Technologies shares fell 3.47% after underperforming the S&P 500 and Nasdaq, despite a 9.5% one-month gain. Analysts expect next-quarter EPS of $0.29 (123% growth) and revenue of $1.54 billion (73.7% growth), while full-year estimates call for EPS of $1.31 and revenues of $7.22 billion.
1. Stock Performance
Shares declined 3.47% on the latest trading day, underperforming the S&P 500’s 0.21% loss and the Nasdaq’s 0.01% gain. Despite this drop, the stock has risen 9.46% over the past month, outpacing both the broader market and its sector.
2. Upcoming Earnings Forecasts
Analysts project next-quarter earnings per share of $0.29, reflecting a 123.08% year-over-year increase, and revenue of $1.54 billion, up 73.72% from the prior-year quarter. Full-year consensus forecasts call for EPS of $1.31 (+74.67%) and revenue of $7.22 billion (+61.25%).
3. Valuation Metrics
The company trades at a forward price-to-earnings ratio of 119.34x, signaling a premium versus peers, and carries a PEG ratio of 2.41 against the industry average of 1.18. Analysts currently assign a hold rating based on these elevated multiples.
4. Industry Context
Operating within the Internet software segment, the firm’s industry group ranks in the bottom 41% of over 250 sectors by strength, highlighting relative challenges despite strong growth projections.