Keep an eye on Palantir, which will post earnings on Tuesday after the closing bell. 

In its last quarter, the company beat on earnings thanks to AI and defense demand. In fact, last quarter’s EPS of 25 cents beat by two cents. Revenue of $1.4 billion, up 69.2% year over year, beat by $60 million. For the current quarter, the company is looking to revenue of between $1.532 billion to $1.536 billion, which is above estimates of $1.33 billion.

Wall Street is looking for EPS of 28 cents on revenue of $1.54 billion. Helping, the company, a major software provider for the U.S. Department of Defense has been a significant beneficiary of explosive defense spending. We should also note that Palantir beat revenue and EPS estimates 100% of the time over the last two years.

Loop Capital sees a strong report ahead. “Our recent work – including upbeat management meetings in March, positive field checks, and our expert call – points to continued AI momentum and another strong beat and raise versus our estimates,” as quoted by CNBC.

Sincerely,

Ian Cooper