Palantir Technologies PLTR will report its fourth-quarter 2024 results on Feb. 3, after market close.

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We anticipate a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by healthy business from existing and new customers, enhancing both Government and Commercial segments. The Zacks Consensus Estimate for total revenues stands at $777.5 million, suggesting 27.8% growth from the year-ago reported quarter.

Going by segments, the consensus estimate for Government revenues is pegged at $425.7 million, indicating 31.4% year-over-year growth. The rise is likely to have been fueled by continued execution in existing programs, new awards indicating the rising demand for AI in government software offerings and favorable deal timing in the quarter, coupled with the government year-end cycle.

The consensus mark for Commercial revenues is pegged at $358.3 million, indicating 26% year-over-year growth. An upsurge in Artificial Intelligence Platform demand driving customer acquisitions, and the expansion of existing customers in the United States as PLTR continues to utilize AI models in production are anticipated to have driven this segment’s revenues.

The Zacks Consensus Estimate for earnings is pegged at 11 cents, implying 37.5% growth from the year-ago reported quarter. Top-line growth and operating margin expansion are likely to have driven the bottom line.

What Our Model Predicts About PLTR

Our proven model does not predict an earnings beat for PLTR 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Palantir has an Earnings ESP of -1.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks That Warrant a Look

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Broadridge Financial Solutions, Inc. BR: The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $1.5 billion, indicating 9.8% year-over-year growth. The consensus mark for earnings stands at $1.4, suggesting 51.1% growth from the year-ago quarter’s reported number. Earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met in the other two, with an average earnings surprise of 1.3%.

BR has an Earnings ESP of +7.72% and a Zacks Rank of 2 at present. The company is scheduled to post its fourth-quarter results on Jan. 31.

Coherent Corp. COHR: The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $1.4 billion, indicating a year-over-year increase of 21.6%. For earnings, the consensus mark is pegged at 70 cents per share, suggesting 94.4% growth from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 25.5%.

COHR has an Earnings ESP of +7.48% and a Zacks Rank #2 at present. The company is scheduled to declare its fourth-quarter results on Feb. 5.

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