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What's in the Offing for Palantir (PLTR) in Q1 Earnings?

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Palantir Technologies Inc. (PLTR - Free Report) is slated to report first-quarter 2021 results on May 11, before the bell. The company delivered an earnings surprise of 250% in the fourth quarter of 2020.

Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $333 million, indicating 3.4% sequential growth. The top line is expected to have benefited from strength in both government and commercial segments. Both segments are likely to have benefited from increased contributions from both existing and new customers.

The consensus mark for earnings is pegged at 4 cents, indicating a sharp decline from 7 cents reported in the fourth quarter. Increasing expenses are likely to have weighed on the bottom line as the company continues to invest in growing headcount and channel partnerships, as well as 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 0.00% and a Zacks Rank #3.

Palantir Technologies Inc. Price and EPS Surprise

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Clear Channel Outdoor (CCO - Free Report) , with an Earnings ESP of +30.67% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Copart (CPRT - Free Report) has an Earnings ESP of +3.19% and a Zacks Rank #2.

Fidelity National Information Services (FIS - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #3.

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