Space tourism company Virgin Galactic (SPCE) has announced mixed third-quarter financial results. The company that aims to take tourists into low Earth orbit posted Q3 revenue of $400,000, which was worse than the $2.06 million expected on Wall Street. However, earnings per share (EPS) came in at a loss of -$2.66, which was better than an expected loss of -$4.02 a share.
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Virgin Galactic said that its Q3 net loss of $75 million improved from a loss of $105 million a year earlier due to lower expenses. The company had $744 million of cash on hand as of September 30 this year. Virgin Galactic raised $37 million through stock issuance during the quarter.
Trouble Taking Off
While Virgin Galactic still aims to fly tourists into space, the company and its stock have struggled with repeated delays. As such, SPCE stock has endured a sharp selloff this year, falling 85% so far in 2024. In the last five years, the company’s share price has declined 96%.
In its latest earnings release, Virgin Galactic said that production of its Delta Class spaceship is on track for 2026, with initial flight-control testing completed and staffing occurring at its operations situated near Phoenix, Arizona.
Is SPCE Stock a Buy?
The stock of Virgin Galactic currently has a consensus Hold rating among seven Wall Street analysts. That rating is based on two Buy, three Hold, and two Sell recommendations made in the last three months. The average SPCE price target of $5.80 implies 18.54% downside risk from current levels.
