Virgin Galactic's shares fell in extended training Tuesday (August 1) despite its stellar Q2 2023 revenue performance.
The company reported an increased sale of $1.87 million during the second quarter, a 400% increase from $357,000 in the same period last year. However, these figures were way below FactSet's estimate of $2.5 million.
As a result of its moderate profit, Virgin Galactic's stock fell by 4.6% in Tuesday's trading session after ending the regular session down 3.3%.
Virgin Galactic added that even if their suborbital spaceflights became regular, it would only generate modest revenues for the near future, SpaceNews reported.
Nevertheless, the company's stock was up 19% year-to-date, according to CNBC.
High But Not High Enough
According to MarketWatch, the company lost $134.4 million ($0.46 per share) to operating losses in the second quarter, compared with $110.7 million ($0.43 per share) in the same period last year. FactSet's estimates were looking for a loss of $0.51 per share.
Virgin Galactic's financial results come as the company prepares for its second commercial flight this month.
Virgin Galactic CEO Michael Colglazier said that its net loss was primarily driven by an increase in research and development expenses related to the development of its future fleet, as well as preparations for "Galactic 02," scheduled no earlier than August 10.
"Our financial position remains strong, and we remain focused on scaling the business and delivering our Delta Class spaceships for commercial service in 2026," he added.
Meanwhile, Rich Smith wrote in The Motley Fool that analysts have set the bar low for Virgin Galactic's Q2 2023 report.
"The earnings number shouldn't be too hard to beat," he added. "After all, last year in Q2, Virgin Galactic posted a $0.43 per share loss, so even if it does 19% worse this time around, that will be considered a win."
