What's in the Cards for Virgin Galactic (SPCE) in Q3 Earnings?
Virgin Galactic Holdings, Inc. SPCE is slated to report third-quarter 2023 results on Nov 8 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 9.8%. Virgin Galactic has a trailing four-quarter negative earnings surprise of 10.89%, on average.
Factors to Note
Future astronaut membership fees are likely to have continued to contribute to the company’s top line in the third quarter. Increased revenues from commercial service for space travel are also likely to have aided SPCE’s third-quarter revenues.
The strong top-line performance is likely to have aided SPCE’s third-quarter bottom-line performance. However, increased research & development expenses due to engineering work for its future fleet and higher SG&A expenses may have dampened its third-quarter earnings.
Q3 Expectations
The Zacks Consensus Estimate for Virgin Galactic’s third-quarter sales is pegged at $1.10 million, suggesting growth of 42.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at a loss of 42 cents per share, implying an improvement from the year-ago quarter’s reported loss of 55 cents.
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 +5.21% 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.
Another Stock to Consider
Here is one defense player you may also want to consider as it has the right combination of elements to post an earnings beat this season:
Spire Global, Inc. SPIR has an Earnings ESP of +20.61% and a Zacks Rank #3. It delivered an earnings surprise of 30.00% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Spire’s third-quarter earnings, pegged at a loss of 66 cents per share, indicates an improvement from the prior-year reported loss of 96 cents. The Zacks Consensus Estimate for SPIR’s sales implies a growth rate of 29.2% from the prior-year reported figure.
Upcoming Defense Releases
Embraer S.A. ERJ has a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for Embraer’s third-quarter earnings, pegged at 14 cents per share, indicates growth of 7.7% from the prior-year reported figure.
The Zacks Consensus Estimate for ERJ’s sales suggests a growth rate of 59.7% from the prior-year reported figure. The company delivered an earnings surprise of 166.67% in the last reported quarter.
Triumph Group, Inc. TGI has a long-term earnings growth rate of 2.6%. The Zacks Consensus Estimate for Triumph’s third-quarter earnings, pegged at a penny per share, calls for a decline of 85.7% from the prior-year reported figure.
The Zacks Consensus Estimate for TGI’s sales suggests an improvement of 9% from the prior-year reported figure. The company delivered an average earnings surprise of 61.25% in the last four quarters.
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Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
Triumph Group, Inc. (TGI) : Free Stock Analysis Report
Spire Global, Inc. (SPIR) : Free Stock Analysis Report
Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report
