Virgin Galactic Holdings Inc SPCE shares are trading lower Friday after the company reported financial results and pushed back its commercial service launch another three months.
Virgin Galactic reported second-quarter revenue of $357,000, which beat the estimate of $90,000, according to data from Benzinga Pro. The company reported a net loss of 43 cents per share, which missed the estimate for a loss of 36 cents per share.
Virgin Galactic highlighted the strength of its cash position with $1.1 billion in cash and equivalents as of June 30. The company said it expects third-quarter free cash flow to be negative in the range of $110 to $120 million.
The space tourism company also announced that it won't begin commercial flights until the second quarter of 2023.
"While our short-term plans now call for commercial service to launch in the second quarter of 2023, progress on our future fleet continues, and many of the key elements of our roadmap are now in place to scale the business in a meaningful way," said Michael Colglazier, CEO of Virgin Galactic.
See Also: Virgin Galactic Defers Space Tourism Flights: Report
Truist Securities analyst Michael Ciarmoli downgraded Virgin Galactic from a Hold rating to Sell and announced a $5 price target following the company's results.
SPCE Price Action: Virgin Galactic has traded between $13.73 and $5.14 over a 52-week period.
The stock was down 15.9% at $6.89 at press time.
Photo: courtesy of Virgin Galactic.
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