What to expect from Virgin Galactic report?

Today after the trading session, space tourism company Virgin Galactic will report its financial results for the second quarter of the year. Will the company, which has been struggling with delays lately, beat analysts' 'modest' expectations?

Projected EPS of -$0.39 vs -$0.36 in Q1 2021

Projected revenue $300,000 vs. $600,000 in Q1 2021 (down nearly 50% y/y)

• Analysts expect a significant slowdown in revenue (down nearly 50% y/y) and a 14th consecutive quarterly loss per share. Investors will focus on the company's cash position and outlook for the next quarters of the year;
• Investors in Virgin Galactic continue to focus on the 'hazy' future of the company, which intends to dominate the sub-orbital space tourism market. In previous quarters, the company presented a 'strong cash position' with reserves hovering around $1 billion;
• Launching a profitable spaceflight business requires massive financial outlays and comes with the 'pain' of a fledgling industry, consisting of delays, updates on new dates and building a business model. The difficulties are being felt by investors in the company, with shares down more than 90% from record valuations;
• The company is still taking business seriously, and has announced a partnership with Boeing, with which it is building 6 more so-called 'motherships' to take tourists beyond Earth's orbit. Virgin Galactic is also building a new factory in the Phoenix, Arizona area and plans to create hundreds of new jobs there. In late July, the company announced a partnership with luxury travel company Virtuoso, offering a limited number of seats to the company's customers;
• The company still has FAA approval for sub-orbital spaceflight and has pledged to meet requirements for new parts for its aircraft. Virgin still has nearly 800 active reservations, which it intends to meet by taking beyond Earth's orbit. Ticket prices start at $450,000;
• Virgin Galactic has pushed back the date of its first tourist flight to Q1 2023 against initial projections of Q4 2022. Management argued the decision due to staff shortages and supply chain interruptions.

Virgin Galactic shares, D1 interval. The company's share price is below the key resistance marked by the 200-session moving average. A breakout of the stock above $10.5 could herald a broader unwinding and a return of bullish momentum. Until Virgin Galactic's business becomes fully scalable and, above all, viable the stock could experience tremendous volatility. The stock has been trading in a sideways trend since early 2022, confirming that current valuations are potentially attractive to long-term investors. Source: xStation 5