Planet stock drops 25% after satellite data venture lowers annual revenue guidance

KEY TAKEAWAYS

Shares of Planet fell as much as 25% in trading, from its previous close at $4.90.

Despite the lowered guidance, Planet co-founder and CEO Will Marshall said in a statement that the company continues “to see strong demand for our proprietary data solutions, driven by global events and the growing awareness of our capabilities.”

Planet’s customer base increased to 903, up from 882 at the end of the fourth quarter.

Shares of Planet after the satellite-imagery and data-analysis company cut its annual revenue guidance following when it reported first-quarter results Thursday.

The company lowered its guidance for its current fiscal-year 2024 revenue to a range of $225 million to $235 million, down from its previous forecast of between $248 million and $268 million. Planet also said it expected wider losses on an adjusted EBITDA basis, increasing its forecast to a range of between $58 million and $67 million from a range of between $37 million and $47 million.

Planet stock
Planet

Shares of Planet fell as much as 25% in midmorning trading Friday, from its previous close at $4.90. The stock is on pace for its worst single day drop since going public in December 2021, erasing year-to-date gains.

Despite the lowered guidance, Planet co-founder and CEO Will Marshall said in a statement that the company continues “to see strong demand for our proprietary data solutions, driven by global events and the growing awareness of our capabilities.”

Planet Chief Financial Officer and Chief Operating Officer Ashley Johnson further emphasized the “challenging macro environment,” and said the company remains “focused on the path to profitability.” She added the company’s balance sheet “is strong,” with $375 million in cash and equivalents and no debt.

For the first quarter, Planet reported revenue of $52.7 million, up 31% from $40.1 million in the same period a year ago, but effectively flat from the prior quarter.

The company’s first-quarter net loss was $34.4 million, or 13 cents a share. That narrowed 22% from its net loss of $44.4 million, or 17 cents a share, a year prior.

Planet’s customer base increased to 903, up from 882 at the end of the fourth quarter. Its customer base is split into three parts by revenue: 44% is defense and intelligence, 29% is commercial and 27% is civil government.

The company follows a fiscal-year calendar that ends Jan. 31.

Why is Planet Labs stock falling?

Planet Labs, a provider of Earth imaging and data, lowered its full-year sales forecast on Thursday, blaming a hard socioeconomic environment.

Is Planet Labs stock a good buy?

In total, nine out of ten analysts covering the firm recommend the stock as Buy. The average Buy rating for S&P 500 stocks is around 53%. The average analyst price objective is at $6.60 per share.

What is the future price of Planet Labs?

Stock Forecast
The 11 analysts that provide 12-month price projections for Planet Labs PBC have a median target of 6.00, with a high estimate of 8.00 and a low estimate of 5.00. The median estimate reflects a +76.47% increase over the previous price of $3.40.

Is Planet Labs profitable?

Planet Labs PBC (PL) gross margin, operating margin, and net profit margin data for the previous ten years. Profit margin is defined as the percentage of revenue retained as income after expenses are deducted. Planet Labs PBC’s net profit margin is -74.6% as of January 31, 2023.

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