[8/11/2020] Virgin Galactic Q2 Earnings & Other Updates

Richard Branson, founder of Virgin Group Ltd., waves after ringing the opening bell during Virgin ... [+] Galactic Holdings Inc.'s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 28, 2019. Photographer: Michael Nagle/Bloomberg

Virgin Galactic (NYSE:SPCE), an aerospace company focused on suborbital spaceflight for space tourists, published Q2 earnings last week. While the companys financials are not very relevant yet, given that it has yet to begin commercial operations, there have been a couple of noteworthy developments in recent weeks.

Space Tourism Updates

The company indicated that it could begin commercial service of its spaceflight by early 2021, flying its founder Richard Branson. While this is behind the companys previous 2020 timeline, the delay was largely expected due to the Covid-19 related disruption. The company continues to test its space flights and noted that it had now cleared 27 out of 29 Federal Aviation Administration milestones. The FAA clearance is key to receiving final approval to begin flights with commercial customers.

New Projects

The company also provided updates on some new projects. The company is working with Rolls-Royce to develop a supersonic aircraft that would be able to carry between 9 to 19 passengers, capable of traveling at about 3x the speed of sound. Separately, the company is also looking to expand its services to start flying customers to orbital destinations such as the International Space Station. The orbital flight is typically much more expensive and currently costs about roughly $50 million today (versus suborbital flights that are priced at $250k per ticket) [1]

Recent Fundraising

On Monday, the company raised about $460 million by selling 23.6 million equity shares in a secondary offering priced at $19.50 per share. The should considerably boost Virgins cash balance, which stood at about $360 million at the end of Q2 2020.

Interested in investing in Space-related stocks? Check out our theme The Final Frontier: Space Stocks To Watch, which includes publicly listed space companies such as Lockheed Martin (NYSE: LMT), Aerojet Rocketdyne (NYSE: AJRD), and Iridium (NASDAQ: IRDM)

[7/16/2020] Valuing Virgin Galactic Stock

Virgin Galactic is an aerospace company focused on suborbital spaceflight for private individuals and researchers. The company hasnt been able to generate much buzz, unlike the Elon Musk-backed SpaceX, considering that it is still in the test phases and doesnt generate meaningful revenues as of yet. That said, things are likely to change in the next few quarters, as it likely begins commercial space flights carrying paying space tourists from 2021, charging each passenger about $250,000. The stock currently trades at about $19 per share, translating into a market cap of under $4 billion. So what exactly are the factors driving Virgin Galactics Revenues And Valuation?

How Does Virgin Galactic Make Money?

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Virgin Galactics Outlook And Valuation

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Virgin Galactic Updates: Whats Happening With SpaceX Rival - Forbes