Palantir shares fall 10% on lower-than-expected guidance

Palantir shares fell 10% in extended trading on Monday after the defense tech firm reported weaker-than-expected guidance.

Here’s how the company did compared to LSEG estimates:

  • Earnings per share: 8 cents adjusted vs. 8 cents expected
  • Revenues: $634 million vs. $625 million expected

The firm, which builds big-data and artificial intelligence software for governments and corporations worldwide issued guidance for the upcoming second quarter and full year. Palantir expects second-quarter revenue to fall between $649 million to $653 million, versus the $653 million expected by LSEG. The company guided to full-year revenue between $2.68 billion and $2.69 billion, weaker than an LSEG consensus estimate of $2.71 billion.

Palantir reported $105.5 million in net income for the quarter, or 4 cents per share, compared with $16.8 million, or 1 cent per share, in the year-ago quarter. It marked the company’s sixth straight quarter of profitability on a GAAP basis.

Revenue of $634 million was up 21% year-over-year from $525 million.

The weaker-than-expected full-year guidance comes despite a solid revenue beat for the first quarter and after remarkable success marketing its artificial intelligence products to the government and the private sector. Earlier this year, Palantir signed a $178 million contract with the U.S. Army to help develop a next-generation, field-deployable sensor station.

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