Virgin Galactic Stock Down After Earnings Miss, Plan to Sell Shares

Virgin Galactic Stock Down After Earnings Miss, Plan to Sell Shares

Shares of Virgin Galactic declined after the company reported lower third-quarter revenue that missed analyst expectations and plans to sell shares at an offering price of up to $300 million.

The stock fell 11% at $6.36 on Thursday. For the year, shares are down almost 87%.

After the market closed on Wednesday the space tourism company reported third-quarter revenue dropped to $402,000 from $1.7 million a year ago. That fell short of the $2.1 million expected by analysts, according to FactSet.

Virgin Galactic reported a loss of $74.5 million, or $2.66 per share, compared with a loss of $104.6 million, or $5.57 per share, last year. That beat the $4.01 loss that was forecast by analysts surveyed by FactSet.

The company, co-owned by Richard Branson, said on Wednesday it had entered a sales agreement in which it may offer and sell shares at an offering price of up to $300 million. The company plans to use proceeds from any sales of its common stock under the at-the-market equity program to fast-track the expansion of its next-generation spaceflight fleet.

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