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What's in Store for Virgin Galactic (SPCE) in Q4 Earnings?
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Virgin Galactic Holdings, Inc. (SPCE - Free Report) is slated to report fourth-quarter 2021 results on Feb 22 after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 28.00%. Virgin Galactic has a trailing four-quarter negative earnings surprise of 33.86%, on average.
Factors to Note
Virgin Galactic’s strategic moves like the vehicle enhancement program and the expansion of the fleet with Delta Class spaceships and the modification of next-generation motherships, buoyed by solid space travel demand, must have had favorably contributed to SPCE’s fourth-quarter revenues.
Additionally, the sponsorship activity from the Unity 22 space flight, along with revenues earned under government contracts, is expected to have continued to favorably impact its revenues in the fourth quarter.
However, the cost involved in the enhancement program and the expansion of the fleet must have had increased the overall expenditure of Virgin Galactic in the soon-to-be-reported quarter. This, in turn, might have hurt its earnings in the soon-to-be-reported quarter.
Also, marketing costs related to the Unity 22 spaceflight and the reopening of ticket sales, along with an increase in employee costs and non-cash stock-based compensation expenses, are expected to have had dampened its bottom line. However, a decrease in contract labor and material costs associated with the development of the spaceflight system may have partially outweighed the negative impact on its earnings in the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 39 cents per share, suggesting a decline of 25.8% from the year-ago quarter’s reported figure.
Virgin Galactic Holdings, Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for Virgin Galactic this time. 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 the case here.
The company has an Earnings ESP of +26.12% and currently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are two defense players that you may want to consider as these also have the right combination of elements to post an earnings beat this season:
Heico boasts a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for HEI’s fourth-quarter earnings implies a growth rate of 9.8%. In the last reported quarter, Heico delivered an earnings surprise of 8.77%.
CurtissWright (CW - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.
In the last reported quarter, Curtiss delivered an earnings surprise of 4.44%. The Zacks Consensus Estimate for CW’s fourth-quarter sales and earnings is pegged at $680 million and $2.36 per share, respectively.
Upcoming Release
Here is one defense player who is yet to release fourth-quarter numbers:
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for Embraer’s fourth-quarter earnings, pegged at 9 cents per share, implies a surge of 228.6% from the year-ago quarter’s tally.
Embraer boasts a long-term earnings growth rate of 17%. ERJ has a four-quarter earnings surprise of 42.21%.
Image: Bigstock
What's in Store for Virgin Galactic (SPCE) in Q4 Earnings?
Virgin Galactic Holdings, Inc. (SPCE - Free Report) is slated to report fourth-quarter 2021 results on Feb 22 after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 28.00%. Virgin Galactic has a trailing four-quarter negative earnings surprise of 33.86%, on average.
Factors to Note
Virgin Galactic’s strategic moves like the vehicle enhancement program and the expansion of the fleet with Delta Class spaceships and the modification of next-generation motherships, buoyed by solid space travel demand, must have had favorably contributed to SPCE’s fourth-quarter revenues.
Additionally, the sponsorship activity from the Unity 22 space flight, along with revenues earned under government contracts, is expected to have continued to favorably impact its revenues in the fourth quarter.
However, the cost involved in the enhancement program and the expansion of the fleet must have had increased the overall expenditure of Virgin Galactic in the soon-to-be-reported quarter. This, in turn, might have hurt its earnings in the soon-to-be-reported quarter.
Also, marketing costs related to the Unity 22 spaceflight and the reopening of ticket sales, along with an increase in employee costs and non-cash stock-based compensation expenses, are expected to have had dampened its bottom line. However, a decrease in contract labor and material costs associated with the development of the spaceflight system may have partially outweighed the negative impact on its earnings in the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 39 cents per share, suggesting a decline of 25.8% from the year-ago quarter’s reported figure.
Virgin Galactic Holdings, Inc. Price and EPS Surprise
Virgin Galactic Holdings, Inc. price-eps-surprise | Virgin Galactic Holdings, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Virgin Galactic this time. 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 the case here.
The company has an Earnings ESP of +26.12% and currently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are two defense players that you may want to consider as these also have the right combination of elements to post an earnings beat this season:
Heico (HEI - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heico boasts a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for HEI’s fourth-quarter earnings implies a growth rate of 9.8%. In the last reported quarter, Heico delivered an earnings surprise of 8.77%.
CurtissWright (CW - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.
In the last reported quarter, Curtiss delivered an earnings surprise of 4.44%. The Zacks Consensus Estimate for CW’s fourth-quarter sales and earnings is pegged at $680 million and $2.36 per share, respectively.
Upcoming Release
Here is one defense player who is yet to release fourth-quarter numbers:
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for Embraer’s fourth-quarter earnings, pegged at 9 cents per share, implies a surge of 228.6% from the year-ago quarter’s tally.
Embraer boasts a long-term earnings growth rate of 17%. ERJ has a four-quarter earnings surprise of 42.21%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.