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

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Virgin Galactic Holdings, Inc. (SPCE - Free Report) is scheduled to release second-quarter 2020 results on Aug 3, after market close.

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

Factors at Play

In the first quarter's earnings call, Virgin Galactic announced that it expects 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.

Further, in the second quarter, overall costs are expected to have escalated due to the prolonged economic impact of the COVID-19 pandemic on the company's operations. Overall costs are also likely to have risen as the company entered into a space act agreement with NASA to develop PPB Hoods.

This might have had an adverse impact on the company’s performance during the soon-to-be-reported quarter. In line with this, the Zacks Consensus Estimate for the company's second-quarter loss is pegged at 28 cents per share, wider than the prior-year quarter's loss of 12 cents.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Virgin Galactic this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

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

Virgin Galactic Holdings, Inc. Price and EPS Surprise

Here are two stocks from the Aerospace sector you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

CurtissWright Corporation (CW - Free Report) is scheduled to report second-quarter 2020 earnings on Aug 3. It has an Earnings ESP of +13.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Leidos Holdings (LDOS - Free Report) is scheduled to report second-quarter 2020 earnings on Aug 4. It has an Earnings ESP of +0.11% and a Zacks Rank #3.

A Recent Defense Release

Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 company, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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