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What's in Store for Virgin Galactic (SPCE) in Q2 Earnings?

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Virgin Galactic Holdings, Inc. (SPCE - Free Report) is slated to report second-quarter 2024 results on Aug 7, after the closing bell.    

In the last reported quarter, the company delivered an earnings surprise of 3.85%. Virgin Galactic has a trailing four-quarter negative earnings surprise of 15.91%, on average.

Factors to Note

Solid revenues generated from commercial spaceflight must have boosted Virgin Galactic’s top-line performance in the second quarter. To this end, it is imperative to mention that in June 2024, the company accomplished its second spaceflight of 2024, with its Galactic 07 spaceship successfully completing its commercial flight. 

Membership fees generated from SPCE’s Future Astronaut community are also likely to have favorably contributed to its second-quarter revenues.

The Zacks Consensus Estimate for SPCE’s revenues is pegged at $3.5 million, suggesting an improvement of 87.2% from the year-ago quarter’s reported actuals. 

On the cost front, the company is expected to have incurred lower materials and consulting expenses compared with the prior-year quarter’s level, thanks to the completion of modifications of its VSS Unity spaceship and mothership carrier aircraft (VMS Eve) in 2023. This, along with lower expenses related to a reduction in its headcount and strong revenue expectations, is likely to have bolstered SPCE’s overall earnings. 

However, higher interest expenses, as well as higher labor costs associated with the development of its next-generation spaceflight vehicles, might have adversely impacted SPCE’s quarterly bottom line to some extent. 

The Zacks Consensus Estimate for second-quarter earnings is pegged at a loss of $5.07 per share, suggesting an improvement from the year-ago quarter’s reported loss of $9.20.

What the Zacks Model Unveils

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, which is not the case here.

The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Stock to Consider

Below is a defense stock that has the right combination of elements to post an earnings beat this reporting cycle.

Curtiss-Wright (CW - Free Report) is slated to release second-quarter results on Aug 7. CW has an Earnings ESP of +2.42% and a Zacks Rank #3 at present.

Curtiss-Wright delivered an average earnings surprise of 9.01% in the trailing four quarters. The consensus estimate for second-quarter earnings is pegged at $2.24 per share, while that for sales is pinned at $736.2 million.

Recent Defense Releases

Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.

Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.

Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.

Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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