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What's in the Offing for Palantir (PLTR) in Q4 Earnings?

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Palantir Technologies Inc. (PLTR - Free Report) is slated to report fourth-quarter 2020 results on Feb 16, before the bell. The company posted an earnings surprise of 125% in the third quarter of 2020.

Q4 Expectations

The Zacks Consensus Estimate for revenues is pegged at $300.4 million, indicating a sequential growth of 3.8%. The top line is expected to have benefited from strength in both government and commercial segments.

While the commercial segment is likely to have benefited from increased contributions from both existing and new customers, the government segment’s revenues are expected to have been driven by strength in U.S. government business.

The consensus mark for earnings is pegged at 2 cents, indicating a sharp decline from 9 cents reported in the third quarter. Increasing expenses are likely to have weighed on the bottom line as the company continues to invest in growing headcount and channel partnerships and in research and development.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Palantir this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Palantir has an Earnings ESP of -50.00% and a Zacks Rank #3.         

Palantir Technologies Inc. Price and EPS Surprise

 

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Rocket Companies (RKT - Free Report) , which has an Earnings ESP of +3.12% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Black Knight , which has an Earnings ESP of +6.31% and a Zacks Rank #2.

TransUnion (TRU - Free Report) , which has an Earnings ESP of +1.55% and a Zacks Rank of 3.

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