Intuitive Machines Stock Is Taking Off Tuesday: What's Going On?

Intuitive Machines Inc LUNR shares are surging Tuesday on what appears to be continued momentum following the company’s second-quarter results last week. Multiple analysts maintained price targets well above current levels following the print.

What Happened: Intuitive Machines reported second-quarter revenue of $41.408 million, missing analyst estimates of $46.6 million, according to estimates from Benzinga Pro. The company reported net income of $18.4 million, down from net income of $28.866 million in the prior year’s quarter.

Intuitive Machines also raised the low end of its full-year revenue guidance. The company now expects 2024 revenue of $210 million to $240 million versus estimates of $228.335 million.

“On the cash side, we are now debt free and expect to have more runway with sufficient cash today to fund operations for the next 12 months as we execute on our growth trajectory,” said Steve Altemus, CEO of Intuitive Machines.

Following the print, Cantor Fitzgerald analyst Andres Sheppard reiterated Intuitive Machines with an Overweight rating and price target of $10. Benchmark analyst Josh Sullivan reiterated a Buy rating and also maintained a price target $10.

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Intuitive Machines stock has seen increased attention in recent trading sessions. It was among the top 10 trending stocks on Reddit’s r/WallStreetBets on Tuesday and was trending across other social sites at the time of writing. Traders appear to be watching the stock in anticipation of potential contract announcements.

On the conference call following earnings, Altemus noted that the company received “official information” from NASA that awards for the Near Space Network Services contract are anticipated in August and September. Executives on the call also said the company recently submitted a letter to NASA expressing interest in commercializing the Volatiles Investigating Polar Exploration Rover (VIPER) mission rover system that was canceled in July.

Intuitive Machines shares soared earlier this year after the company’s moon lander Odysseus touched down on the surface of the moon as part of the company’s IM-1 mission, making Intuitive Machines the first private company to land on the moon and bringing the U.S. back to the moon for the first time since 1972. The company’s IM-2 mission is expected to launch in December or early January.

LUNR Price Action: Intuitive Machines shares were up 36% at $5.78 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Intuitive Machines.