Virgin Galactic Heads for Latest Loss in Q3

Red ink likely while spacecraft are grounded for upgrades

Richard Branson in a flightsuit rings the bell at the stock exchange.

Getty Images / Drew Angerer 

Key Takeaways

  • Virgin Galactic is expected to report its latest loss, of 39 cents per share for Q3, late on Nov. 3.
  • The space tourism company's flights remain on hold for spacecraft upgrades, after lab testing revealed a potential structural weakness a year ago.
  • Investors will want to know whether the Q2 2023 target for the start of commercial flights has slipped again.
  • The company expected to see an outflow of $110 million to $120 million in Q3; it held cash and securities valued at $917.5 million at the end of Q2.

Expectations are modest for Virgin Galactic Holdings Inc. (SPCE)'s earnings report late on Nov. 3, as analysts tracked by Visible Alpha say the space tourism company will extend an unbroken streak of quarterly red ink since it went public three years ago with a loss of 39 cents per share.

Third-quarter revenue of $200,000 will be far overshadowed by the cash outflows Virgin Galactic projected to be between $110 million and $120 million when it reported results for the second quarter in August.

The company hasn't launched any space flights since founder Richard Branson rode on its inaugural suborbital passenger flight in July 2021, after advancing the takeoff to beat one by rival Blue Origin carrying its founder, Jeff Bezos.

Virgin Galactic's return to space, once planned for the second half of this year, has slipped to next year's second quarter as of the last earnings report, delayed by spacecraft upgrades that started last year after the company said laboratory testing revealed a possible structural weakness.

In the meantime, Virgin Galactic has been accepting $150,000 deposits toward the $450,000 cost of its 90-minute flight (along with four days of onsite training.) The company didn't provide an update on the number of deposits it has received when it last reported quarterly results.

Virgin Galactic had $917.5 million in unrestricted cash and marketable securities at the end of the last quarter, after raising $425 million from the sale of convertible senior notes.

The stock is down 32% in 2022, and 76% over the last year (see chart below).

One-Year Total Return for S&P 500 and Virgin Galactic

Source: TradingView

Virgin Galactic Earnings History

Virgin Galactic's share price tumbled 17% on Aug. 5 following the company's Q2 report, after the company pushed back the target date for the start of commercial flights for Q2 2023.

The stock fell 9.3% on May 6 following the Q1 results, which showed a wider loss than analysts had estimated.

Virgin Galactic Key Stats

  Estimate for
Q3 FY 2022
Q3 FY 2021 Q3 FY 2020
Earnings Per Share ($) -0.39 -0.32 -0.34
Revenue ($ thousand) 200 2,580 N/A

Source: Visible Alpha

Article Sources
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  1. Virgin Galactic. "Virgin Galactic Announces Second Quarter 2022 Financial Results and Provides Business Update," Page 2.

  2. Virgin Galactic. "Virgin Galactic Begins Planned Vehicle Enhancement And Modification Period; Unity 23 Test Flight Rescheduled to Follow Completion of This Program."

  3. Fast Company. "How Virgin Galactic Is Pioneering Consumer Space Travel."

  4. Virgin Galactic. "Virgin Galactic Announces Second Quarter 2022 Financial Results and Provides Business Update," Pages 5-6.

  5. Nasdaq. "Why Virgin Galactic Stock Fell in August."

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