We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Virgin Galactic's (SPCE) Q4 Earnings?
Read MoreHide Full Article
Virgin Galactic Holdings, Inc. (SPCE - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 25.93%.
In the trailing four quarters, Virgin Galactic came up with a negative earnings surprise of 16.54%, on average.
Let's take a closer look at the factors influencing the company’s upcoming results.
Factors at Play
Earlier in 2020, Virgin Galactic announced its expectations of witnessing minimal revenues for the remainder of 2020 due to its shift in focus to execute test flight programs and ensure the safety of its workforce, given the challenges associated with the prolonged COVID-19 pandemic. We expect the upcoming results to duly reflect the aforementioned trend.
However, during the third-quarter earnings call, the company revealed modest revenue expectations related to payloads during the fourth quarter. So, we may expect its upcoming results to reflect payload revenue growth on account of such projections.
During the fourth 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. Moreover, the company has been experiencing ongoing delays to its business and operations, also due to COVID-19, which has led to accumulated impacts on both schedule and cost efficiency. This trend is expected to have continued through the fourth quarter.
These aforementioned factors might have adversely impacted the company’s bottom-line performance during the soon-to-be-reported quarter.
Earnings Whispers
Our proven model predicts 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.
Earnings ESP: Virgin Galactic has an Earnings ESP of +9.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corp. (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
What's in Store for Virgin Galactic's (SPCE) Q4 Earnings?
Virgin Galactic Holdings, Inc. (SPCE - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 25.93%.
In the trailing four quarters, Virgin Galactic came up with a negative earnings surprise of 16.54%, on average.
Let's take a closer look at the factors influencing the company’s upcoming results.
Factors at Play
Earlier in 2020, Virgin Galactic announced its expectations of witnessing minimal revenues for the remainder of 2020 due to its shift in focus to execute test flight programs and ensure the safety of its workforce, given the challenges associated with the prolonged COVID-19 pandemic. We expect the upcoming results to duly reflect the aforementioned trend.
However, during the third-quarter earnings call, the company revealed modest revenue expectations related to payloads during the fourth quarter. So, we may expect its upcoming results to reflect payload revenue growth on account of such projections.
During the fourth 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. Moreover, the company has been experiencing ongoing delays to its business and operations, also due to COVID-19, which has led to accumulated impacts on both schedule and cost efficiency. This trend is expected to have continued through the fourth quarter.
These aforementioned factors might have adversely impacted the company’s bottom-line performance during the soon-to-be-reported quarter.
Earnings Whispers
Our proven model predicts 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.
Earnings ESP: Virgin Galactic has an Earnings ESP of +9.68%. 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
Virgin Galactic Holdings, Inc. price-eps-surprise | Virgin Galactic Holdings, Inc. Quote
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corp. (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>