Virgin Galactic Holdings Inc. will unveil its second-quarter financial results after the market closes on Tuesday. As the private space company continues to expand its commercial operations, analysts surveyed by FactSet are expecting a loss of 51 cents per share and revenue of $1.2 billion for Virgin Galactic.
Advancements in Commercial Space Travel
June witnessed a significant milestone for Virgin Galactic as it successfully completed its first commercial flight with the Galactic 01 mission. The mission carried three crew members from the Italian Air Force and the National Research Council of Italy into space to conduct microgravity research.
Now, Virgin Galactic is preparing for its next mission, Galactic 02, scheduled for August 10. This will mark the company’s first flight to transport private astronauts into space.
Monthly Flights on the Horizon?
Following the Galactic 02 mission, Virgin Galactic has expressed its intention to commence regular monthly flights. Industry experts are eagerly awaiting the company’s earnings conference call for further insight into this proposed flight schedule.
Micah Walter-Range, president of space consulting firm Caelus Partners and a contributor to the S-Network Space Index, shared his expectations for the call. He is particularly interested in understanding how efficiently Virgin Galactic is able to turn around their spacecraft. Walter-Range believes that any indication that the turnaround process is either easier or harder than anticipated will have significant implications for future flight frequency and profitability.
The upcoming earnings call will provide investors and space enthusiasts with valuable insight into Virgin Galactic’s financial performance and their path towards continuing advancements in commercial space travel.
Virgin Galactic’s Commercial Flight: A Milestone Achievement
Last month, Philip Gibbs, an analyst at KeyBanc Capital Markets, hailed Virgin Galactic’s first commercial flight as a significant milestone for the company. However, he cautioned that the full expansion of its operations may take several years.
In a recent filing, Virgin Galactic disclosed its plans to raise $400 million to further develop its spaceship fleet, expand its infrastructure, and scale up its commercial activities. Despite these ambitious goals, the company surprised investors with a larger-than-expected loss in its most recent quarter. Additionally, Richard Branson’s satellite-launch company, Virgin Orbit Holdings Inc., has resorted to filing for Chapter 11 bankruptcy protection.
With this context in mind, industry expert Walter-Range from Caelus Partners is eager to hear more about the competition between Virgin Galactic and Jeff Bezos’s Blue Origin. Specifically, attention will be focused on Blue Origin’s efforts to make a “return to flight” following a launch failure last year. Walter-Range speculates that Blue Origin could either emerge as a stronger competitor to Virgin Galactic if it successfully expands its operations under recently awarded NASA contracts or alternatively shift its focus towards orbital and lunar operations, reducing competition in the suborbital flight market.
In response to these developments and investor sentiment, Virgin Galactic’s stock gained 8.9% during Monday’s trading session—its highest single-day percentage increase since June 28. Notably, the company’s shares have already soared by 23% in 2023, outperforming the 19.5% gain of the S&P 500 index.
Overall, Virgin Galactic’s first commercial flight remains a remarkable achievement, even as the company faces hurdles on its path to full-scale operations. As the space industry continues to evolve and competitors emerge, it will be intriguing to see how Virgin Galactic navigates these challenges and adapts to changing market dynamics.
Additional Subheading
Consider the Future Potential