Virgin Galactic Volatile Following Soft Q4

Virgin Galactic reported about half the revenue analysts expected.
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Shares of Virgin Galactic SPCE were volatile after hours Tuesday after the company reported fourth-quarter financial results that missed estimates.

The space tourism company reported fourth-quarter revenue of $529,000, yielding a net loss of $73 million.

Analysts were expecting Virgin Galactic to report a net loss of 15 cents per share on revenue of $1 million.

“Throughout 2019, we continued to achieve key milestones in our mission to open access to space in a safe, innovative and affordable way,” said CEO George Whitesides. “During the fourth quarter, we took major steps toward reaching that goal by completing our transaction with Social Capital Hedosophia and becoming publicly listed on the NYSE, as well as building operational readiness at Spaceport America in New Mexico. The progress we made in 2019, combined with the high level of interest from potential customers, underpin the steps we are taking toward reopening ticket sales.”

Virgin Galactic is involved in the space tourism industry, and while the company has yet to announce a successful flight featuring a customer, it does have big plans to launch founder Richard Branson by the end of the year.

Year to date the stock has nearly tripled, rising more than 190%. The stock was up in recent after-hours action after initially falling more than 3.5% following the report.