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How Will Palantir's (PLTR) Top Line Shape Up in Q2 Earnings?

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Palantir Technologies Inc. (PLTR - Free Report) will report second-quarter 2021 results on Aug 12.

The company’s top line is expected to have performed well in the quarter, driven by increased scale and efficiency of its three-phase business model that engages acquire-phase, expand-phase and scale-phase customers. Both government and commercial segments are anticipated to do well, driven by these strengths.

Palantir’s acquire-phase customers generate less than $100,000 a year. Expand-phase customers generate greater than $100,000 a year with negative contribution margins, and require significant investments from the company for scaling themselves up and growing revenues. Customers in scale phase generate greater than $100,000 a year, along with positive contribution margins.

In the to-be-reported quarter, we expect Palantir to have seen revenue growth through the addition of new acquire-phase customers. Expand-phase revenues are expected to have benefited from increased adoption of software, while increased contributions from existing customers are likely to have helped the scale phase.

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $360.6 million, indicating 5.9% sequential growth.

Palantir Technologies Inc. Price and EPS Surprise

Palantir Technologies Inc. Price and EPS Surprise

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

Palantir currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s (INFO - Free Report) second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.