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Virgin Galactic shares fall after another quarterly loss, no date set for next spaceflight test

Virgin Galactic delivered first quarter results after the market closed on Monday.

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Virgin Galactic’s carrier aircraft releases its spacecraft Unity during a glide flight test.

Virgin Galactic

Virgin Galactic delivered first quarter results after the market closed on Monday, announcing that it is evaluated the target date for its next spaceflight test, which the company previously planned for this month.

Mike Moses, Virgin Galactic’s president of space missions and safety, said on the company’s conference call with investors that the uncertainty stems from “a potential wear-and-tear issue” identified last week on VMS Eve, the aircraft that carries its spacecraft before launch. The part in question was scheduled for maintenance in the fall, Moses said, but Virgin Galactic is now studying VMS Eve “to determine whether we need to take action now.”

“We will report back to the market next week with an update on schedule implications to our next flight,” Moses said.

The space tourism company reported an adjusted EBITDA loss of $55.9 million, down slightly from a loss of $59.5 million in the previous quarter and below the adjusted EBITDA loss of $63.6 million expected by analysts surveyed by FactSet.

The company booked zero dollars of revenue in the quarter, as it did in the prior quarter. Virgin Galactic had about $617 million in cash on hand at the end of the first quarter, down from about $666 million in the fourth quarter.

Shares of Virgin Galactic fell more than 7% in after hours trading, having closed down 8% at $17.95 a share on Monday.

The stock has fallen 24% year to date – having dropped more than 70% from highs above $60 a share hit in February.

Virgin Galactic’s stock losses accelerated over the past two months after delays to its test program, as well as share sales by chairman Chamath Palihapitiya, founder Richard Branson, and Cathie Wood’s new space ETF. The stock also fell after Jeff Bezos’ venture Blue Origin announced plans to launch the first crewed flight of its space tourism rocket on July 20, a move which UBS warned likely removes Virgin Galactic’s first-mover advantage.

Andrew Chanin, CEO of ProcureAM which holds Virgin Galactic in its Space ETF, told CNBC that the lack of certainty or timeline around the upcoming test flights means investors are starting to have “less and less patience.”

“It was okay [that was] the case a couple months or even a year ago, but now with Blue Origin kind of right on their heels … it puts some competition right in [Virgin Galactic’s] immediate way – and it now seems like it’s very likely that they may not be first to market,” Chanin said.

The company is working to complete development of its SpaceShipTwo system, with four test flights remaining before Virgin Galactic begins commercial service in 2022.

Virgin Galactic attempted the first of those four spaceflight tests in December, but the mission was cut short by an engine anomaly. The company scheduled a repeat of the flight attempt for February, but then delayed to May to give more time to address an electromagnetic interference issue with the spacecraft’s flight computer. Virgin Galactic said in its first quarter report that it completed corrective work on the issue, saying VSS Unity “is ready to start pre-flight procedures for flight.”

The fourth spaceflight test, expected later this year, will carry members of the Italian Air Force for professional astronaut training. It will be Virgin Galactic’s first “full revenue flight,” with the company disclosing it will generate $2 million – or the equivalent of $500,000 per seat.

In the meantime, Virgin Galactic in March unveiled the next spacecraft addition to its fleet, VSS Imagine, which is the first of its next-generation SpaceShip III class.

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Source: https://www.cnbc.com/2021/05/10/virgin-galactic-spce-earnings-q1-2021-results.html

virgin-galactic-shares-fall-after-another-quarterly-loss,-no-date-set-for-next-spaceflight-test

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Source: https://www.cnbc.com/earnings/

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Stitch Fix shares surge as online styling service reports surprise profit

Stitch Fix shares jumped after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

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The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares jumped 14% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Consumers have been splurging on new outfits in recent months, as many head back to school and return to social gatherings. Some have also citied the need for new clothes after either gaining or losing weight during the Covid pandemic.

Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 19 cents vs. a loss of 13 cents expected
  • Revenue: $571.2 million vs. $548 million expected

Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. A year ago, it posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.

Revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier. The company said net revenue per active client was $505, surpassing the $500 threshold for the first time ever. Customers have been purchasing more items to keep at home, Stitch Fix said, as they have more brands and price points to choose from.

Stitch Fix defines active clients as people who either ordered a “Fix” subscription or bought an item directly from its website in the preceding 52 weeks from the final day of the quarter.

The company also said it had its lowest ever churn rate at the end of the period, meaning its customers are sticking around.

Last month, Stitch Fix finally opened up its direct-buy option, which is now known as “Freestyle,” to the public. This allows people to shop Stitch Fix for individual items of clothing, without needing to sign up for a subscription.

CEO Elizabeth Spaulding said this should help Stitch Fix grow its addressable market in the year ahead. The company’s next initiative will be to market and raise broader awareness around the offering, she said. Stitch Fix is preparing to roll out a national advertising campaign on the debut.

Early indications are that “Freestyle” is meaningfully accretive to the company’s revenue per active client metric, Spaulding told analysts on a conference call.

“Clients have agency, flexibility and choice while also experiencing a highly personalized shopping experience,” Spaulding said.

For its fiscal first quarter, Stitch Fix said it sees sales in a range of $560 million to $575 million. That’s below analysts’ expectations for $588 million.

For the upcoming fiscal year, Stitch Fix anticipates sales rising 15% or more from the prior year. Analysts polled by Refinitiv had been looking for an 18% increase.

While the entire retail industry is working through supply chain complications, Stitch Fix said it is seeing a small impact, but nothing that will hurt the business in the fall and winter months. The company said it is less reliant on Vietnam, where manufacturing has largely come to a standstill due to ongoing pandemic lockdowns in the region.

As of Tuesday’s market close, Stitch Fix shares have fallen nearly 39% this year. The company has a market cap of $3.8 billion.

Find the full press release from Stitch Fix here.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Source: https://www.cnbc.com/2021/09/21/stitch-fix-sfix-q4-2021-earnings.html

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© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

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