How Will Palantir's (PLTR) Top Line Shape Up in Q1 Earnings?

·3 min read

Palantir Technologies Inc. PLTR will report first-quarter 2021 results on May 11.

The company’s top line is expected to have performed well in the quarter, driven by increased scale and efficiency of its three-phase business model that engages acquire-phase, expand-phase and scale-phase customers. Both government and commercial segments are anticipated to do well, driven by these strengths.

Palantir’s acquire-phase customers generate less than $100,000 a year. Expand-phase customers generate greater than $100,000 a year with negative contribution margins, and require significant investments from the company for scaling themselves up and growing revenues. Customers in scale phase generate greater than $100,000 a year along with positive contribution margins.

Palantir Technologies Inc. Price and EPS Surprise

Palantir Technologies Inc. Price and EPS Surprise
Palantir Technologies Inc. Price and EPS Surprise

Palantir Technologies Inc. price-eps-surprise | Palantir Technologies Inc. Quote

In the to-be-reported quarter, we expect Palantir to have seen revenue growth through the addition of new acquire-phase customers. Expand-phase revenues are expected to have benefited from increased adoption of software, while increased contributions from existing customers are likely to have helped the scale phase.

Notably, the Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $333 million, indicating 3.4% sequential growth.

Palantir currently carries a Zacks Rank 3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Business Services Companies

Equifax’s EFX first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s RHI first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s OMC first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

AccessZacks Top 10 Stocks for 2021 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report

To read this article on Zacks.com click here.