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What's in Store for Virgin Galactic (SPCE) in Q1 Earnings?
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Virgin Galactic Holdings, Inc. (SPCE - Free Report) is slated to report first-quarter 2022 results on May 5 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 20.51%. Virgin Galactichas a trailing four-quarter negative earnings surprise of 28.73%, on average.
Factors to Note
Astronaut membership fees associated with new ticket sales, buoyed by solid demand for space travel, must have favorably contributed to SPCE’s first-quarter revenues. Additionally, the sponsorship activity of the Unity 22 space flight, along with revenues earned from government contracts, is expected to have continued to favorably impact its revenues in the first quarter.
However, the cost involved in the EVE enhancement program and VSS Unity and the expansion of the fleet must have increased the overall expenditure of Virgin Galactic in the soon-to-be-reported quarter. This, in turn, might have dampened its earnings in the soon-to-be-reported quarter.
Also, higher employee costs, increased noncash stock-based compensation expenses and the opening of ticket sales are expected to have hurt Virgin Galactic’s bottom line. However, labor efficiencies and a decrease in contract labor and material costs associated with the development of the spaceflight system may have partially offset the negative impact on its earnings in the first quarter.
The Zacks Consensus Estimate for first-quarter earningsis pegged at a loss of 34 cents per share, suggesting a deterioration from the year-ago quarter’s reported figure.
Virgin Galactic Holdings, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for SPCE this time. The combination of a positive Earnings ESPand 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 currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
The long-term earnings growth rate of CAE is pegged at 8%. The Zacks Consensus Estimate for CAE’s first-quarter earnings is pegged at 18 cents per share.
Spirit Aerosystems(SPR - Free Report) has an Earnings ESP of +9.34% and a Zacks Rank #3. Spirit Aerosystems boasts a long-term earnings growth rate of 8.5%.
The Zacks Consensus Estimate for SPR’s first-quarter earnings indicates an improvement of 50% from the prior-year reported figure.
Upcoming Release
Here is one defense player yet to release first-quarter numbers:
Curtiss-Wright Corporation (CW - Free Report) has a Zacks Rank #3. The Zacks Consensus Estimate for Curtiss’ first-quarter earnings, pegged at $1.19 per share, implies a decline of 21.2% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for Curtiss’ first-quarter sales is pegged at $565 million. CW has a four-quarter earnings surprise of 6.06%.
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What's in Store for Virgin Galactic (SPCE) in Q1 Earnings?
Virgin Galactic Holdings, Inc. (SPCE - Free Report) is slated to report first-quarter 2022 results on May 5 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 20.51%. Virgin Galactichas a trailing four-quarter negative earnings surprise of 28.73%, on average.
Factors to Note
Astronaut membership fees associated with new ticket sales, buoyed by solid demand for space travel, must have favorably contributed to SPCE’s first-quarter revenues. Additionally, the sponsorship activity of the Unity 22 space flight, along with revenues earned from government contracts, is expected to have continued to favorably impact its revenues in the first quarter.
However, the cost involved in the EVE enhancement program and VSS Unity and the expansion of the fleet must have increased the overall expenditure of Virgin Galactic in the soon-to-be-reported quarter. This, in turn, might have dampened its earnings in the soon-to-be-reported quarter.
Also, higher employee costs, increased noncash stock-based compensation expenses and the opening of ticket sales are expected to have hurt Virgin Galactic’s bottom line. However, labor efficiencies and a decrease in contract labor and material costs associated with the development of the spaceflight system may have partially offset the negative impact on its earnings in the first quarter.
The Zacks Consensus Estimate for first-quarter earningsis pegged at a loss of 34 cents per share, suggesting a deterioration 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 does not conclusively predict an earnings beat for SPCE this time. The combination of a positive Earnings ESPand 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 currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
CAE (CAE - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 0.72%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate of CAE is pegged at 8%. The Zacks Consensus Estimate for CAE’s first-quarter earnings is pegged at 18 cents per share.
Spirit Aerosystems(SPR - Free Report) has an Earnings ESP of +9.34% and a Zacks Rank #3. Spirit Aerosystems boasts a long-term earnings growth rate of 8.5%.
The Zacks Consensus Estimate for SPR’s first-quarter earnings indicates an improvement of 50% from the prior-year reported figure.
Upcoming Release
Here is one defense player yet to release first-quarter numbers:
Curtiss-Wright Corporation (CW - Free Report) has a Zacks Rank #3. The Zacks Consensus Estimate for Curtiss’ first-quarter earnings, pegged at $1.19 per share, implies a decline of 21.2% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for Curtiss’ first-quarter sales is pegged at $565 million. CW has a four-quarter earnings surprise of 6.06%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.