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5:44 PM · 23 February 2022

Virgin Galactic stock soars despite mixed quarterly results

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Virgin Galactic (SPCE.US) stock surges nearly 12.0% during today's session despite the fact that the spaceflight company reported mixed quarterly results after the relaunch of its tickets sales earlier this month. Nevertheless, quarterly loss turned out to be narrower than expected and the company announced that its cash position remains strong.

  • Virgin Galactic lost 31 cents per share compared to the 35-cent loss analysts surveyed by Refinitiv were expecting. On the other hand, revenue figures disappointed. The company posted sales of $141,000, well below market estimates of $300,000.
  • Company's cash, cash equivalents, and marketable securities amounted to approximately $931 million as of December 31, 2021. This amount does not reflect the company's recent fundraise.
  • Tickets formerly sold at $250,000 now sell at $450,000. Of 1000 seats, the spaceflight enterprise has only 250 seats left for sale.
  • Expected launch of private astronaut commercial service remains on track for Q4 2022.
  • For the current quarter the company expects free cash flow  between $75 to $85 million.
  • Company said earlier that the ramp-up of Delta class spacecraft will determine when the company becomes cash flow positive. And Virgin Galactic doesn't see the Delta class spacecraft starting research flights until 2025 and won't enter commercial service until 2026.
Virgin Galactic (SPCE.US) stock has shed more than 80% over the past year, however a downward move halted around support at $7.60. Nevertheless only a decisive break above resistance at $10.95 would indicate that sentiment shifted to more bullish. Until then, continued range trading looks to be the base case scenario. Source: xStation5
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