Virgin Galactic Posts Quarterly Loss, Revenue Beats

Virgin Galactic Holdings (SPCE), an American spaceflight company, has reported a wider-than-expected loss for the third quarter of 2021 on the back of the delayed start of its commercial service.

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The company reported a loss of $0.32 per share against the consensus loss estimate of $0.28 per share. It had reported a loss of $0.41 per share in the same quarter last year.

Meanwhile, total revenue of $2.58 million surpassed the Street’s estimate of $1.64 million. Adjusted EBITDA came in at negative $68 million, compared to negative $66 million in the same quarter last year. (See Virgin Galactic stock charts on TipRanks)

During the quarter, while the company recorded adjusted selling, general and administrative expenses of $40 million, up 66.7% year-over-year, adjusted research and development expenses fell 24.4% to $31 million.

As of September 30, 2021, the company’s cash position stood at $1 billion, including cash and cash equivalents of $721 million.

CEO Comments

Looking ahead, the CEO of Virgin Galactic, Michael Colglazier, said, “We are entering our fleet enhancement period with a clear roadmap for increasing the durability, reliability and predictability of our vehicles in preparation for commercial service next year. Demand for space travel is strong, and we’ve been selling seats ahead of the pace we had planned.”

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Wall Street’s Take

Overall, the stock has a Hold consensus rating based on 4 Buys, 3 Holds and 3 Sells. The average Virgin Galactic price target of $30.30 implies 52.34% upside potential from current levels. Shares have gained 10.8% over the past six months.

Risk Analysis

According to the new TipRanks’ Risk Factors tool, the Virgin Galactic stock is at risk mainly from three factors: Finance and Corporate, Tech and Innovation, and Production, which contribute 33%, 19%, and 15%, respectively, to the total 54 risks identified for the stock.