Virgin Galactic Holdings Inc. undershot analysts’ estimates in the latest quarter even as the space-tourism company gears up for monthly commercial flights.
(Bloomberg) — Virgin Galactic Holdings Inc. undershot analysts’ estimates in the latest quarter even as the space-tourism company gears up for monthly commercial flights.
The company on Tuesday reported second-quarter sales of $1.87 million, below the $2.47 million analysts had expected and above the $390,000 for the first three months of the year. It forecast earning about $1 million in revenue in each of the last two quarters of 2023.
“Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026,” Chief Executive Officer Michael Colglazier said in a statement.
Virgin Galactic lost 46 cents a share, narrower than the 51-cent loss analysts had expected. And it reported $980 million in cash, cash equivalents and marketable securities as of June 30, up from $874 million the previous quarter.
The shares fell 2.9% to $4.02 as of 4:55 p.m. in extended trading in New York. The stock had climbed almost 19% this year as of the close of regular trading Tuesday.
The results come after the company in June sent paying customers on a research mission to the edge of space for the first time, a milestone for the Richard Branson-founded company almost two decades in the making. That came a month after a successful flight ending a nearly two-year hiatus following a federal probe and several delays.
Virgin Galactic aims to launch its next mission, Galactic 02, as soon as Aug. 10 — its first trip ferrying private tourists to space. The company plans to fly additional commercial missions monthly for the foreseeable future. But it doesn’t anticipate turning a profit with flights until the debut of a new class of spaceplanes known as its Delta class.
Virgin Galactic says the new craft will be optimized for faster turnaround and reuse.
It plans to begin assembly of the Delta vehicles next year, followed by assembly completion and testing in 2025. The vehicles are expected to start commercial operations in 2026.
(Updates with unadjusted earnings per share in fourth paragraph.)
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