Virgin Galactic Holdings, Inc. SPCE is expected to release its fourth quarter 2021 results on February 22 after the closing bell.
In the last reported quarter, the company posted a negative earnings surprise of 28.00%. Virgin Galactic has a negative surprise over the last four quarters of 33.86% on average.
Factors to Note
Virgin Galactic’s strategic moves like vehicle enhancement program and fleet expansion with Delta-class spacecraft and modification of next-generation motherships, backed by strong space travel demand, must have contributed. positively to SPCE’s fourth quarter revenues.
In addition, sponsorship activity for the Unity 22 spaceflight, as well as revenue generated from government contracts, is expected to have continued to have a favorable impact on its revenue in the fourth quarter.
However, the cost involved in the improvement program and fleet expansion were expected to increase Virgin Galactic’s overall spending in the soon to be announced quarter. This, in turn, could have hurt its earnings in the soon-to-be-released quarter.
In addition, marketing costs related to the Unity 22 spaceflight and the reopening of ticket sales, as well as an increase in staff costs and non-cash stock-based compensation expenses, are expected to have dampened its results. . However, a decrease in contract labor and material costs associated with the development of the spaceflight system may have partially offset the negative impact on its earnings in the fourth quarter.
Zacks’ consensus estimate for fourth-quarter earnings is pegged at a loss of 39 cents per share, suggesting a 25.8% decline from the figure reported a year ago.
Virgin Galactic Holdings, Inc. price and EPS surprise
Virgin Galactic Holdings, Inc. price-eps-surprise | Quote from Virgin Galactic Holdings, Inc.
What the Zacks Model Reveals
Our proven model predicts an earnings beat for Virgin Galactic this time. The combination of a positive earnings ESP and a Zacks rank of #1 (strong buy), 2 (buy), or 3 (hold) increases the odds of beating earnings, which is the case here.
The company has an earnings ESP of +26.12% and currently carries a Zacks rank of #2. You can discover the best stocks to buy or sell before they are flagged with our earnings ESP filter .
Other actions to consider
Here are two defense players you might want to consider as they also have the right combination of elements to post a winning streak this season:
Heico HEI has an ESP on earnings of +1.06% and a Zacks rank #3. You can see the full list of today’s Zacks #1 Rank stocks here.
Heico has a long-term earnings growth rate of 12%. Zacks’ consensus estimate for HEI’s fourth-quarter earnings implies a growth rate of 9.8%. In the last reported quarter, Heico achieved a profit surprise of 8.77%.
CurtissWright CW has a +0.64% Earnings ESP and a No. 3 Zacks rank.
In the last reported quarter, Curtiss posted a surprise profit of 4.44%. Zacks’ consensus estimate for CW’s fourth-quarter sales and earnings are pegged at $680 million and $2.36 per share, respectively.
Upcoming release
Here’s one defenseman who has yet to release fourth quarter numbers:
Embraer S.A. ERJ has an ESP of 0.00% and Zacks Rank #3. Zacks’ consensus estimate for Embraer’s fourth-quarter earnings, set at 9 cents per share, implies a 228.6% increase over the year-ago quarter count.
Embraer has a long-term earnings growth rate of 17%. ERJ has a four-quarter earnings surprise of 42.21%.
Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.
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EmbraerEmpresa Brasileira de Aeronautica (ERJ): Free Inventory Analysis Report
CurtissWright Corporation (CW): Free Stock Analysis Report
Heico Corporation (HEI): Free Stock Analysis Report
Virgin Galactic Holdings, Inc. (SPCE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
