Why Is Virgin Galactic Stock Trading Lower Today?

Virgin Galactic SPCE shares are trading lower on Wednesday after the company reported worse-than-expected Q4 EPS results.

Virgin Galactic reported fourth-quarter revenue of $869,000. The figure came in above average analyst estimates of $340,000. The company also reported a fourth-quarter loss of $0.55 per share, which missed estimates for a loss of $0.51 per share.

Virgin Galactic said its cash position remains strong with cash, equivalents and marketable securities of $980 million. For Q1, the company expects free cash flow of negative $135 million to negative $145 million.

The company also expects to commence commercial operations next quarter.

"With our enhancement program complete and validation flights underway, we remain on track to launch commercial service in the second quarter of 2023. Our near-term objective for commercial spaceline operations is to safely deliver recurring flights with our current ships while providing an unrivaled experience for private astronauts and researchers," said Michael Colglazier, CEO of Virgin Galactic.

See Also: Richard Branson's Virgin Galactic 'On Track' To Launch Commercial Space Service In Q2

SPCE Price Action: Virgin Galactic has a 52-week high of $11.25 and a 52-week low of $3.25.

Virgin Galactic shares are down 17.4% at $4.74 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Virgin Galactic.