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Virgin Galactic Loses Altitude on Stock Offering, Wider-Than-Expected Loss in Q2

imageStock Markets7 hours ago (Aug 03, 2020 04:37PM ET)

(C) Reuters.

By Yasin Ebrahim – Virgin Galactic fell sharply in after-hours trade on Monday after the space tourism company detailed plans to tap shareholders for $460 million and reported earnings that fell short of analysts’ estimates as the impact of the Covid-19 pandemic weighed on performance.

The proceeds of the stock offering would be used for general corporate purposes, including working capital, general and administrative matters, and capital expenditures. The company, founded by the British billionaire Sir Richard Branson, has big plans for space travel in the coming year.

Virgin Galactic Holdings (NYSE:SPCE) fell more than 9% in after-hours trading before recovering some of that ground.

The company reported a GAAP EPS of -$0.30, missing estimates of -$0.26, but revenue of $360 million topped estimates of $825,000.

“During the period, our operations were impacted by the COVID-19 pandemic, despite our efforts to minimize disruption,” the company said.

Looking ahead, the company said it expected to “advance to the next phase of its test flight program with its first powered spaceflight from Spaceport America this fall … Assuming both flights demonstrate the expected results, Virgin Galactic anticipates Sir Richard Branson’s flight to occur in the first quarter of 2021.”

Virgin Galactic Loses Altitude on Stock Offering, Wider-Than-Expected Loss in Q2

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