California-based Virgin Galactic Holdings, Inc. (NYSE: SPCE) has reported mixed results for the first quarter of 2022.
During the quarter, revenues of 319,000 beat the Street’s estimate of $120,000. However, the loss of $0.36 per share was wider than analysts’ expectations of $0.32 per share. The company had posted a loss of $0.55 per share in the same quarter last year.
California-based Virgin Galactic is developing commercial spacecraft and aims to provide suborbital spaceflights to space tourists. It also manufactures advanced air and space vehicles.
CEO’s Comments
The CEO of Virgin Galactic, Michael Colglazier, said, “We are executing on our plans to scale the business by developing our future fleet, investing in digital manufacturing technologies, and building out our commercial strategy to deliver a consumer experience like no other.”
“Against a backdrop of escalating supply chain and labor constraints, our teams are containing the majority of these issues to minimize the impact on schedules. We look forward to returning to space in the fourth quarter and launching commercial service in the first quarter of next year,” Colglazier added.
Price Target
Based on three Buys, three Holds and three Sells, the stock has a Hold consensus rating. SPCE’s average price target of $13.49 implies almost 80% upside potential from current levels. Shares have lost 60.9% over the past year.
Bloggers Are Neutral
TipRanks data shows that financial blogger opinions are 54% Neutral on SPCE, compared to the sector average of 69%.
Conclusion
Following the announcement of the results, after the market closed on Thursday, SPCE stock lost 2% in the extended trading session. The fall continued, and the stock was trading 6.3% down in the pre-market session on Friday.
Apart from the wider-than-anticipated loss, the market reacted negatively to the delay in the launch of the company’s commercial space flight service.
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