Q1 Fiscal 2022 Earnings Release

On May 9, 2022, Palantir reported its fiscal Q1 2022 results for the quarter ending March 2022. The Company reported an earnings-per-share (EPS) profit of $0.02 missing consensus analyst estimates for a profit of $0.04. Revenues grew 30.8% YoY to $446.31 million, beating analyst estimates for $443.51 million.  

Downside Guidance

Palantir expects fiscal Q2 2022 revenues between $470 million versus $483.76 million consensus analyst estimates. This is a base case and could rise in response to responding to any geopolitical developments. Palantir expects adjusted operating margin of 20%. Fiscal full-year 2022 operating margin is expected at 27% and expects annual growth to continue at 30% through 2025.

Conference Call Takeaways

Palantir CEO Alex Karp pointed out that trend they believed would happen are happening at an accelerated rate. He continued ramble about the genesis of escapism to the Metaverse without solving problems where inputs are anti-correlated. He stated that Palantir thrives in the good times and bad times. The Company throws off free cash flow and expected inflation. The quality of government revenues are crucial since inflation will suffer from inflation. He continued his expounding the virtues of the Company, “Palantir, we are playing a critical, crucial and much bigger role than we're allowed to mention or would ever discuss in public and current events. Obviously, commercially, because our partners and other future partners are being disrupted. Their supply chains are disrupted. There's a threat of a disruption in the broader economy. And we are -- and they -- many realize that the reality of a truly monumental, epic and horrific disruption in the form of a nuclear attack is much higher than is being reported. But also in the government context where we are playing an outsized role, and we're very proud of that and we're proud of the people we're able to support.” He went on to say that Palantir’s products are on the front line and on the news every day and would someday like to discuss exactly what they’re doing. However, it’s clandestine nature and can’t be revealed. Palantir CFO Shyam Sankar added that Foundry will be the place to build applications of the future, “With Foundry, you're 90% of the way there on day 1. Software-defined data integration, native multi-tenancy for your applications, the OPIs, version pipelines, applications, artifacts, to just name some of the components, that make Foundry work from the start.”

PLTR Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provide a precision view of the landscape for PLTR stock. The weekly rifle chart downtrend made a bottom near the $6.57 Fibonacci (fib) level. The weekly 5-period moving average (MA) is rising at $9.70 to attempt a breakout on a crossover through $9.57. The weekly stochastic has a mini pup through the 40-band. The weekly  market structure low (MSL) buy triggered on a breakout through $8.58. The weekly upper Bollinger Bands (BBs) sit at $15.07. The daily rifle chart is attempting a breakout as the 5-period MA crosses up through the 15-period MA at $9.64 towards the daily upper BBs at $10.81. The daily 50-period MA support sits at $8.84 and 200-period MA resistance sits at $14.64. Prudent investors can watch for opportunistic pullback levels at the $9.37 fib, $8.58 weekly MSL trigger, $7.79 fib, $7.37, $6.57 fib, $5.55 fib, and the $4.83 fib level. Upside trajectories range from the $12.52 level up towards the $17.22 fib level.