Virgin Galactic Reports Better-Than-Expected Q1 Results

Virgin Galactic Holdings, Inc. SPCE reported its first-quarter financial results after the bell Tuesday. Here's a look at the highlights. 

The Details: Virgin Galactic reported quarterly losses of 25 cents per share which beat the analyst consensus estimate of losses of 29 cents by 13.79%.

Quarterly sales came in at $2 million which beat the analyst consensus estimate of $1.92 million by 4.28% and represented a 410.2 % increase over sales of $392,000 from the same period last year.

The company said its spaceship final assembly facility in Arizona is on track to open in summer 2024, and its production schedule for the Delta Class spaceships remains on track for revenue service in 2026. VMS Eve is expected to support an increased flight rate of up to 125 flights per year and have an annualized run-rate of $450 million in revenue with the first two Delta Class spaceships.

“It’s an exciting time for Virgin Galactic as we celebrate the success of VSS Unity with its upcoming ‘Galactic 07’ mission and remain laser-focused on executing our Delta Class program. Tool delivery and parts fabrication are beginning to accelerate as we work to complete the bulk of the Delta design phase this summer and move more fully into the build phase. We remain on track for commercial service in 2026,” said Michael Colglazier, CEO of Virgin Galactic.

Outlook:  Virgin Galactic expects revenue for the second quarter to be approximately $3.5 million and free cash flow to be in the range of negative $110 million to negative $120 million.

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SPCE Price Action: According to Benzinga Pro, Virgin Galactic shares are down 4.85% after-hours at 96 cents at the time of publication Tuesday.

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