One of the big movers in today’s market is Astra Space (NASDAQ:ASTR). At the time of writing, ASTR stock has rocketed more than 13%. This move comes on higher-than-average trading volume, suggesting something is brewing.
Now, Astra Space is a stock that has been in the news lately for a number of reasons. This de-SPAC company went public in July 2021 and has been on a rather rocky trajectory since then. As investors continue to de-risk their portfolios, companies like Astra Space have fallen out of favor.
Currently, shares of ASTR stock are down to the $4.60 level. That’s a drop of nearly 75% from the company’s 52-week high of $16.95.
Accordingly, today’s move is a big positive for investors who have held on or sought value in the beaten-up de-SPAC space. Let’s dive into what’s driving outperformance with this stock today.
ASTR Stock Surges on Earnings Announcement
Today, Astra Space announced that the company would be delaying its earnings release. Normally, such an announcement would be met with uncertainty and downward price action. However, there were a few notable line items in this press release investors are jumping on right now.
Most importantly, Astra Space noted that the company “currently expects fourth quarter and year ended 2021 financial results to meet or be more favorable than previously issued guidance.” That’s a good thing, and investors are pricing that in right now. Additionally, the company noted that it expects to have cash and cash equivalents of $325 million on the balance sheet when it eventually releases its numbers.
The reason for the delay appears to have nothing to do with anything nefarious. Rather, the company’s filing status has changed, and it appears it just needs more time.
Overall, this head’s up is being perceived positively by investors, and for good reason. Now, the question is whether this positive sentiment is warranted or not. Accordingly, I expect more volatility on the horizon for Astra Space up to its March 31 earnings release date.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.