Virgin Galactic Heads for Latest Loss in Q3

Key Takeaways

  • Virgin Galactic is anticipated to report its newest loss, of 39 cents per share for Q3, late on Nov. 3.
  • The area tourism firm’s flights stay on maintain for spacecraft upgrades, after lab testing revealed a possible structural weak spot a 12 months in the past.
  • Buyers will need to know whether or not the Q2 2023 goal for the beginning of economic flights has slipped once more.
  • The corporate anticipated to see an outflow of $110 million to $120 million in Q3; it held money and securities valued at $917.5 million on the finish of Q2.

Expectations are modest for Virgin Galactic Holdings Inc. (SPCE)’s earnings report late on Nov. 3, as analysts tracked by Seen Alpha say the area tourism firm will prolong an unbroken streak of quarterly purple ink because it went public three years in the past with a lack of 39 cents per share.

Third-quarter income of $200,000 shall be far overshadowed by the money outflows Virgin Galactic projected to be between $110 million and $120 million when it reported outcomes for the second quarter in August.

The corporate hasn’t launched any area flights since founder Richard Branson rode on its inaugural suborbital passenger flight in July 2021, after advancing the takeoff to beat one by rival Blue Origin carrying its founder, Jeff Bezos.

Virgin Galactic’s return to area, as soon as deliberate for the second half of this 12 months, has slipped to subsequent 12 months’s second quarter as of the final earnings report, delayed by spacecraft upgrades that began final 12 months after the corporate mentioned laboratory testing revealed a potential structural weak spot.

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Within the meantime, Virgin Galactic has been accepting $150,000 deposits towards the $450,000 price of its 90-minute flight (together with 4 days of onsite coaching.) The corporate did not present an replace on the variety of deposits it has acquired when it final reported quarterly outcomes.

Virgin Galactic had $917.5 million in unrestricted money and marketable securities on the finish of the final quarter, after elevating $425 million from the sale of convertible senior notes.

The inventory is down 32% in 2022, and 76% during the last 12 months (see chart beneath).

Supply: TradingView

Virgin Galactic Earnings Historical past

Virgin Galactic’s share worth tumbled 17% on Aug. 5 following the corporate’s Q2 report, after the corporate pushed again the goal date for the beginning of economic flights for Q2 2023.

The inventory fell 9.3% on Could 6 following the Q1 outcomes, which confirmed a wider loss than analysts had estimated.

Virgin Galactic Key Stats

  Estimate for
Q3 FY 2022
Q3 FY 2021 Q3 FY 2020
Earnings Per Share ($) -0.39 -0.32 -0.34
Income ($ thousand) 200 2,580 N/A

Supply: Seen Alpha