Virgin Galactic Holdings Inc (NYSE:SPCE) shares are trading lower Wednesday on the heels of the company’s quarterly results.
What Happened: Virgin Galactic reported second-quarter revenue of $1.87 million, which missed the consensus estimate of $2.69 million.
The company reported an adjusted loss of 46 cents per share, which beat analyst estimates for a loss of 51 cents per share. The loss was wider than the prior year, primarily driven by an increase in research and development expenses related to the development of its future fleet.
Free cash flow came in at negative $135 million versus negative $91 million in the second quarter of 2022. Virgin Galactic said its cash position remains strong, with cash, equivalents and marketable securities of $980 million as of June 30.
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“During the quarter, we successfully completed two spaceflights in two months, including the launch of commercial service in late June with a scientific research mission,” said Michael Colglazier, CEO of Virgin Galactic.
“Scheduled for next week, the ‘Galactic 02’ mission will deliver a transformational experience for our first private astronauts, and we expect to continue broadening access to space with monthly flights thereafter.”
Virgin Galactic anticipates revenue of approximately $1 million in both the third and fourth quarters. Free cash flow in both quarters is expected to be negative $120 million to $130 million.
Virgin Galactic said it remains on track to deliver Delta Class spaceships for commercial service in 2026.
SPCE Price Action: Virgin Galactic shares were down 3.62% at $3.99 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Virgin Galactic.
