Virgin Galactic (NYSE:SPCE) stock is down nearly 9% today after reporting that the launch of its commercial spaceflight faces further delays. It seems that even positive first-quarter results cannot offset this pain.
On Thursday, the suborbital spaceflight company posted its financial results for its fiscal first quarter of 2022. It managed to slightly beat revenue estimates, despite being a pre-sale company at this point.
Virgin Galactic reported earning $320,000 in revenue, narrowly beating out the consensus estimate of $280,000. The company did however fail to meet Wall Street estimated adjusted earnings per share (EPS) estimates of 32 cents, instead reporting a loss of 36 cents.
Importantly, this earnings miss is not the only reason for SPCE stock to fall today. News that Virgin Galactic has to delay its commercial launch has weighed on shares.
SPCE Stock Slumps on Commercial Service Delay
Virgin Galactic will delay its commercial launch by one quarter, from Q4 2022 to Q1 2023. Given that this launch is key for its business to grow, it seems the news spooked investors.
Michael Colglazier, CEO of Virgin Galactic, offered investors insight into the decision:
Against a backdrop of escalating supply chain and labor constraints, our teams are containing the majority of these issues to minimize impact on schedules. We look forward to returning to space in the fourth quarter and launching commercial service in the first quarter of next year.
Unfortunately, investors have been particularly unforgiving toward SPCE lately. Today’s drop comes after a miserable few months for the company. Virgin Galactic has shed nearly 50% in the year to date, and is down nearly 90% from its 52-week high of $57.51.
Virgin Galactic appears to be yet another casualty of the current bear market. Whether it will regain investor confidence upon the official launch of its commercial spaceflight program remains to be seen.
On the date of publication, Shrey Dua did not hold (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.