SPCE Stock Falls Ahead Of Virgin Galactic Earnings As Investors Await Key Catalysts

Virgin Galactic (SPCE) will report second-quarter results Thursday, its first earnings report since founder Richard Branson’s flight to the edge of space last month. SPCE stock fell.


Virgin Galactic Report

Estimates: FactSet analysts see Virgin Galactic reporting a loss of 33 cents per share vs. a loss of 30 cents per share in the year-ago quarter. Revenue is seen rising to $300,000 from zero. The company has not yet started commercial service but has some small revenue streams for research flights.

Results: Check back after the market closes Thursday.

So far, 600 people have booked space flights, but ticket sales remain closed. However, Virgin Galactic earlier said sales would resume sometime after Branson’s flight.

Meanwhile, Wall Street has pointed to several other catalysts that could trigger movement in SPCE stock.

Canaccord Genuity previously has pointed to a possible announcement raising ticket prices above the previous $250,000 level as well as establishment of a flight plan in 2022 with an increasing commercial launch tempo.

Cowen analysts are also looking to the third and fourth test flights and the timing of the first commercial flight.

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SPCE Stock

Shares tumbled 2.6% to 31.03 on the stock market today. SPCE stock fell hard last month after the company filed a regulatory notice following Branson’s flight that it plans to sell up to $500 million in stock. That triggered the worst weekly sell-off since SPCE stock became public. The stock has remained below the key 50-day line since.

Boeing (BA) shares fell 0.2% to 224.92 Tuesday midday. Boeing’s venture capital arm HorizonX has a $20 million minority stake in Virgin Galactic.

Virgin Galactic plans to start commercial service in early 2022 and has several research flights lined up, a key revenue stream for the commercial space company.

A researcher for the International Institute for Astronautical Sciences will conduct experiments with new health care technologies during a space flight that could happen as early as next year. A future NASA-funded research mission will include a planetary scientist.

Branson also said that former CEO George Whitesides will fly on the company’s next test flight, according to a CNBC report.

Follow Gillian Rich on Twitter for space news and more.


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