Virgin Galactic slumps 14% after earnings miss and new share offering
- Virgin Galactic plummeted as much as 14% on Tuesday after the company announced its second quarter earnings that missed analyst estimates.
- Additionally, the space exploration company announced a new share offering of up to 20 million shares, which put additional pressure on shares.
- The company reiterated that if two upcoming test flights go as planned, Sir Richard Branson would fly to space in the first quarter of 2021.
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Virgin Galactic slumped as much as 14% on Tuesday after the company reported second quarter earnings on Monday that missed analyst estimates.
The space tourism company reported second quarter GAAP earnings per share of -30 cents, versus analyst estimates of -27 cents, and reported adjusted Ebitda of -$54 million. At the end of the quarter, the space exploration company had $360 million in cash and cash equivalents.
Virgin Galactic also said it would raise new funds via a 20.5 million share offering.
The firm received 12 deposits from customers for Virgin Galactic's orbital spaceflights, and exceeded 700 total participants in its "One Small Step" program.
The "One Small Step" program requires a $1,000 refundable deposit and reserves a seat on a flight into space. The flight is expected to cost $250,000.
The company remains on schedule for sending its founder, Sir Richard Branson, into space. Virgin Galactic plans to "advance to the next phase" of its test flight with its first powered spaceflight this fall.
The first flight will have two test pilots in the cockpit. Assuming a successful flight, Virgin will then conduct a second space flight with a crew of two test pilots and four specialists in the cabin. The third test flight will occur in the first quarter of 2021 and fly Branson into space.
Shares of Virgin Galactic tumbled as much as 14% to $20.71 in Tuesday trades.