Shares of Virgin Galactic Holdings Inc. fell in extended trading Tuesday after the private space company’s second-quarter revenue came in below Wall Street’s estimates.
The company’s stock fell 4.6% in extended trading Tuesday after ending the regular session down 3.3%.
Related: These are the passengers for Virgin Galactic’s first private spaceflight
Virgin Galactic
SPCE,
reported sales of $1.871 million, up from $357,000 in the same period last year. Analysts surveyed by FactSet were looking for revenue of $2.5 million.
The company said it lost $134.4 million, or 46 cents a share, in the second quarter, compared with a loss of $110.7 million, or 43 cents a share, in the same period last year. Analysts surveyed by FactSet were looking for a loss of 51 cents a share.
Related: SpaceX and Virgin Galactic are pushing space tourism, but most Americans plan to stay on Earth, poll finds
Virgin Galactic, which is targeting Aug. 10 for the launch of its second commercial spaceflight, Galactic 02, said that its net loss was primarily driven by an increase in research and development expenses related to development of its future fleet.
“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,” said Virgin Galactic CEO Michael Colglazier, in a statement. “Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026.”
Related: SpaceX and Virgin Galactic are pushing space tourism, but most Americans plan to stay on Earth, poll finds
Revenue for each of the third and fourth quarter is expected to be approximately $1 million, Virgin Galactic said in a statement.
Speaking during a conference call late Tuesday, Virgin Galactic executives explained that the company has around 800 people “in the queue” to fly into space with the company.
Related: Virgin Galactic hits milestone, but full ramp of commercial operations still ‘years away,’ analyst says
Whereas initial missions are being fully livestreamed in a blaze of publicity, Colglazier said that this will change, depending on customers’ preferences. “There will be some flights that we want to do in a full public manner – we will find a balance,” he said. “It doesn’t always need to be a detailed stream of the interior of the cabin.”
“We will be giving that material to our astronauts,” Colglazier added, with some customers opting to control what images are shared publicly from their trips to space. The CEO explained that Virgin Galactic does not want to “overly commercialize” the astronauts’ personal experiences.
Read the full article here
