Virgin Galactic Q2 2021 Earnings Report Recap

SPCE missed on earnings, matched predictions on revenue

Key Takeaways

  • Virgin Galactic's loss per share exceeded analyst predictions and widened YOY.
  • The company reported its first quarterly revenue since Q1 FY 2020.
  • Virgin Galactic successfully completed two space flights and received key FAA approval in move toward commercial service.
Virgin Galactic Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
EPS Miss -$0.39 -$0.34
Revenue (millions) Match $0.6 $0.6

Source: Predictions based on analysts' consensus from Visible Alpha

Virgin Galactic (SPCE) Financial Results: Analysis

Virgin Galactic Holdings, Inc. (SPCE) reported Q2 FY 2021 earnings that were mixed relative to analyst predictions. The company posted losses per share that widened year-over-year (YOY) and that missed analyst predictions. Virgin Galactic has posted losses per share for at least the past 14 quarters, and this quarter's losses are the third largest over that period. On the other hand, the company posted quarterly revenue for the first time following four consecutive quarters of no revenue. Quarterly revenue of $0.6 million matched analyst predictions.

Shares of Virgin Galactic spiked by about 11% in after hours trading before settling back down. They are now up about 5.4% overall in extended trading. Virgin Galactic shares have fluctuated dramatically over the past year, climbing well above and falling below the market multiple times. The company's stock is currently outperforming the market, providing 1-year trailing total returns of 56.5% as compared with 33.1% for the S&P 500, as of Aug. 5.

VSS Unity Flight and FAA License Update

On July 11, Virgin Galactic's VSS Unity completed its first space flight with a full crew. This marks a crucial step toward the company's plans to launch commercial service in 2022. Another key milestone toward that goal was an update to Virgin Galactic's existing commercial space transportation operator license to allow the company to fly customers into space. This update was made by the Federal Aviation Administration (FAA) and marks the first time this organization has licensed a spaceline to fly customers.

Virgin Galactic (SPCE) Earnings Call Recap

Virgin Galactic CEO Michael Colglazier said that the company would reopen ticket sales, with prices starting at $450,000 per seat. This price point is significantly higher than when the company previously offered tickets for sale. Colglazier said that Virgin Galactic has "a purposeful range of product offerings in order to satisfy the different ways people will want to share this experience of private astronaut flights."

The company did not offer any forward earnings or revenue guidance in its earnings press release.

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  1. Virgin Galactic Holdings Inc. "Virgin Galactic Announces Second Quarter 2021 Financial Results."

  2. Visible Alpha. "Financial Data."

  3. TradingView. "Price Chart: SPCE and S&P 500."

  4. CNBC. "Virgin Galactic reopens ticket sales, with prices starting at $450,000 per seat."

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