Back to top

Image: Bigstock

What's in Store for Virgin Galactic's (SPCE) Q3 Earnings?

Read MoreHide Full Article

Virgin Galactic Holdings, Inc. (SPCE - Free Report) is scheduled to release third-quarter 2020 results on Nov 5, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 7.14%.

Let's take a closer look at the factors influencing Virgin Galactic’s upcoming results.

Factors at Play

Earlier in the year, Virgin Galactic announced its expectations of witnessing minimal revenues for the remainder of 2020 due to its shift in focus to execute test flight program and ensure the safety of its workforce, given the challenges associated with the COVID-19 pandemic. We expect the upcoming results to duly reflect this trend.

During the third quarter, the company is expected to have incurred escalated expenses due to the prolonged economic impact of the COVID-19 pandemic on the company's operations. Further, it has been witnessing a rise in vehicle tooling costs in recent times, as it continues to prepare some of its facilities for commercial operations.

This might have adversely impacted the company’s bottom-line performance during the soon-to-be-reported quarter. In line with this, the Zacks Consensus Estimate for the company's third-quarter loss is pegged at 27 cents per share, indicating a deterioration from a loss of 20 cents incurred in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Virgin Galactic this time around.

The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here as elaborated below.

Earnings ESP: Virgin Galactic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Virgin Galactic Holdings, Inc. Price and EPS Surprise

Recent Defense Releases

Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.

General Dynamics (GD - Free Report) reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.

Hexcel Corporation (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

Published in