Virgin Galactic (NYSE:SPCE) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Virgin Galactic (NYSE:SPCE) released its quarterly earnings results on Thursday. The company reported ($0.81) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.79) by ($0.02), FiscalAI reports. Virgin Galactic had a negative net margin of 18,063.93% and a negative return on equity of 106.67%. The firm had revenue of $0.23 million for the quarter, compared to analyst estimates of $0.20 million.

Here are the key takeaways from Virgin Galactic’s conference call:

• Virgin Galactic said it remains on track for flight testing in Q3 and space flights in Q4 2026, with the first production spaceship moved into the test and launch hangar and ground testing underway.
• The company highlighted progress on commercial readiness, including hiring pilots, advancing FAA Part 450 licensing, and beginning construction of a rocket motor assembly line expected to be operational in Q4.
• Virgin Galactic said booking interest has been strong, with about 650 founding astronauts representing roughly a year of advanced bookings and new $750,000 tickets seeing qualified inquiries from customers in more than 20 countries.
• First-quarter results showed limited revenue but improving cost discipline, with $200,000 of revenue, operating expenses down 26% year over year to $66 million, and free cash flow improving to negative $93 million.
• Management emphasized a strengthening financial runway, citing $251 million in cash and marketable securities, continued ATM funding, and an early $10 million note redemption that reduces upcoming debt payments.

Virgin Galactic Stock Down 3.0%

SPCE stock traded down $0.09 during mid-day trading on Friday, hitting $2.80. 10,119,019 shares of the company were exchanged, compared to its average volume of 5,619,061. The company has a market capitalization of $227.54 million, a PE ratio of -0.47 and a beta of 2.18. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 1.01. Virgin Galactic has a twelve month low of $2.13 and a twelve month high of $6.64. The firm has a fifty day simple moving average of $2.64 and a 200 day simple moving average of $3.03.

Hedge Funds Weigh In On Virgin Galactic

Several large investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in Virgin Galactic by 284.7% in the first quarter. AQR Capital Management LLC now owns 90,945 shares of the company’s stock worth $263,000 after purchasing an additional 67,303 shares in the last quarter. Rhumbline Advisers lifted its holdings in Virgin Galactic by 21.9% during the 1st quarter. Rhumbline Advisers now owns 40,487 shares of the company’s stock worth $123,000 after buying an additional 7,282 shares during the last quarter. Cetera Investment Advisers grew its position in shares of Virgin Galactic by 77.8% in the 2nd quarter. Cetera Investment Advisers now owns 37,406 shares of the company’s stock worth $102,000 after acquiring an additional 16,369 shares in the last quarter. American Century Companies Inc. grew its position in shares of Virgin Galactic by 44.8% in the 2nd quarter. American Century Companies Inc. now owns 19,845 shares of the company’s stock worth $54,000 after acquiring an additional 6,143 shares in the last quarter. Finally, XTX Topco Ltd bought a new stake in shares of Virgin Galactic in the 2nd quarter valued at approximately $195,000. Institutional investors own 46.62% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SPCE. Weiss Ratings reissued a “sell (e+)” rating on shares of Virgin Galactic in a research report on Monday, April 20th. Susquehanna lifted their target price on Virgin Galactic from $2.50 to $3.00 and gave the stock a “neutral” rating in a research report on Friday, April 10th. Jefferies Financial Group reduced their price target on Virgin Galactic from $8.00 to $5.00 and set a “buy” rating for the company in a report on Thursday, April 2nd. Finally, Wall Street Zen lowered Virgin Galactic from a “hold” rating to a “sell” rating in a research note on Saturday, April 4th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $3.33.

Virgin Galactic Company Profile

Virgin Galactic Holdings, Inc (NYSE: SPCE) is a commercial spaceflight company developing and operating spacecraft for private individuals and research customers. The firm’s primary business is suborbital human spaceflight, offering passengers a brief trip to the edge of space aboard its reusable spaceplane. In parallel, the company is building out infrastructure and support services for suborbital payload deployments and microgravity research missions.

The core flight system consists of a carrier aircraft, WhiteKnightTwo, which lifts the spaceplane SpaceShipTwo to high altitude before release.