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Will Top-Line Improvement Aid Palantir's (PLTR) Q2 Earnings?

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Palantir Technologies Inc. (PLTR - Free Report) will report its second-quarter 2024 results on Aug 5, after the bell.

We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing as well as new customers, strengthening both Government and Commercial segments. The current Zacks Consensus Estimate for total revenues stands at $652.3 million, indicating 22.3% growth from the year-ago reported quarter.

Going by segments, the consensus estimate for Government revenues is pegged at $347 million, indicating 15.1% year-over-year growth. The company’s Gotham platform secures multiyear government contracts, driving double-digit sales growth.

The consensus mark for Commercial revenues is pegged at $305.7 million, indicating 31.9% year-over-year growth. A notable trend for Palantir is its successful pivot from relying almost entirely on government contracts to making significant inroads into Corporate America. The U.S. commercial division's performance has been impressive, driven by AI-powered operating systems and boot camps as its primary market strategies.

Palantir Technologies Inc. Price and EPS Surprise

Palantir Technologies Inc. Price and EPS Surprise

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

Revenue growth and strong operating performance are expected to have driven the bottom line in the quarter, the Zacks Consensus Estimate for which is pegged at 8 cents, indicating 60% growth from the year-ago reported quarter.

PLTR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots of Some Service Stocks

Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.

EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.

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