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Virgin Galactic Q2 2020 Earnings – Zero Revenue but stock increases on Powered Test Flight Update

Virgo Galactic (NYSE: SPCE) – Richard Branson’s venture to pioneer commercial space travel – is still in the pre-earnings phase as formal flights have not yet begun. Nonetheless, the stock has become popular with hedge funds and investors due to the expectation that Virgin Galactic will soon unleash a new era of sub-orbital space flights, swinging its passengers at hypersonic speeds across continents.

In this background, Virgin Galactic took on a new light today when it was announced profit for the second quarter of 2020.

Virgin Galactic’s passenger plane will fly three times at the speed of sound

Virgin Galactic Q2 2020 Profit Score Card

For the three months ended June 30, 2020, Virgin Galactic reported $ 0 in revenue. This is expected from a pre-income company. Keep in mind that engineering services generated the bulk of last quarter’s revenue.

(All figures are in thousands of dollars)

Virgin Galactic’s cash and cash equivalents for the quarter were $ 360 million.

(All figures are in millions of dollars)

Virgin Galactic reported a loss of $ 63 million for Q2 2020.

Facebook (NASDAQ: FB) Second Quarter 2020 Profit – A strong performance driven by power in ad revenue

(All figures are in millions of dollars)

Finally, the company reported earnings per share of – $ 0.3, with expectations missed by $ 0.04.

(All figures are in dollars)

Virgin Galactic has revealed the following business highlights:

  • Appointed Michael Colglazier as new Chief Executive Officer in preparation for commercial services.
  • Continues to show strong pre-sales demand in the ‘One Small Step’ initiative, with over 700 deposits received on July 30, 2020.
  • Minimum customer refunds, with a total of prospective astronauts of approximately 600 as of July 30, 2020.
  • Deposit agreements concluded with twelve customers for orbital space flights.
  • Unveiled design concept for a high speed vehicle.
  • Revealed interior cabin design for SpaceShipTwo, accompanied by Augmented Reality mobile app, which provides a customer experience simulation of Virgin Galactic space flight and cabin interior.
  • Completion of construction of the third floor of Spaceport America, where astronaut training and flight preparation operations will take place.

Regarding the status of motorized test flights, Virgin Galactic noted in her earnings report:

Virgin Galactic expects to advance to the next phase of its test flight program this fall with its first powered space flight from Spaceport America, with two test pilots in the cockpit. Virgin Galactic expects to conduct a second powered space flight from Spaceport America, with a crew of two test pilots in the cockpit and four mission specialists in the cabin. Assuming both flights demonstrate the expected results, Virgin Galactic expects Sir Richard Branson’s flight to take place in the first quarter of 2021. “

The market has responded positively / negatively to Virgin Galactic’s earnings release, with the shares posting a gain of around 7 percent in after-hours trading. To date, the stock has risen about 103 percent.

Source

In recent days, Virgin Galactic has provided important details about its commercial activities. For example, the company first unveiled the cabin of the SpaceShipTwo on July 28, giving a glimpse of what a $ 250,000 space flight would look like. The interior would give a wide view of the space panorama through seventeen windows. In addition, the seats in the cabin are said to be made of high-quality aluminum and carbon fiber. The seats are said to be cantilevered on the sides of the cabin, programmed to automatically adjust and recline as soon as a passenger leaves them to take in the stunning views. Also, the seats would recline during return to maximize passenger comfort.

Today Virgin Galactic unveiled a new aircraft design that will use engines built in conjunction with Rolls-Royce Limited. The aircraft can carry up to 19 passengers and can fly at altitudes above 60,000 feet. Crucially, this plane reduces commercial supersonic flights at speeds up to Mach 3 after the Concord planes closed in early 2000. Unlike the propellant-based engines for the SpaceShipTwo, this supersonic aircraft is likely to use air compression in its engines to produce thrust. While the company has revealed few details about this aircraft, it can reach the edge of space, giving passengers a brief microgravity experience. However, any formal launch is still a long way off as the company has only completed the first stage of the design process.

Updating

Virgin Galactic shares have now fallen more than 6 percent as a company plans to raise funds by offering 20.49 million additional shares. The S-1 application was just submitted.

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