What happened
Satellite imagery specialist Planet Labs PBC (PL 8.40%) reported underwhelming results from the most recent quarter and offered tepid guidance about what is to come. Investors appear to be losing patience with this space start-up, sending shares down 15% in Friday trading.
So what
Planet Labs is part of a new breed of space stocks trying to capitalize on growing demand for satellite capabilities. The company is a leading provider of satellite imagery and geospatial products, working with more than 900 commercial and government customers in the agriculture, forestry, intelligence, education, and finance sectors.
The company lost $0.14 per share in its fiscal second quarter ended July 31 on revenue of $53.8 million, falling just short of analyst expectations for earnings of $0.08 per share on sales of $54 million. Sales were up 11% year over year, and Planet Labs grew its customer count by 10% from the same three months a year ago.
"This quarter was one of increasing focus and operational efficiency," CEO Will Marshall said in a statement. "We continue to feel the market tailwinds and the pull from customers for the insights that our solutions enable."
During the quarter Planet Labs also completed its acquisition of Sinergise, a platform that helps customers organize and monitor satellite data.
NYSE: PL
Key Data Points
Now what
Planet Labs sees fiscal third-quarter sales coming in between $54 million and $56 million, and full-year fiscal 2024 revenue to be between $216 million and $223 million. That suggests some downside to Wall Street's $57 million and $230 million consensus, and the full-year guidance is a decline of about $10 million from previous guidance.
After the earnings report at least five Wall Street banks cut their price targets on the stock, but it's worth noting that all five kept buy or equivalent ratings on the shares.
Indeed, Planet Labs appears to be moving in the right direction. But the company is moving a little slower than Wall Street had expected. For those with an interest in space stocks and who are willing to be patient, this could be an attractive time to look closely at Planet Labs.
