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Virgin Galactic’s quarterly loss increases, plans next spaceflight test for late November

Space tourism company Virgin Galactic reported third quarter results on Thursday with an increased loss as the company looks to finish its development program….

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SpaceShipTwo spacecraft Unity during a glide flight test in New Mexico.

Virgin Galactic

Space tourism company Virgin Galactic reported third quarter results on Thursday with an increased loss as the company looks to fly two more test spaceflights to finish its development program.

“During the quarter we made good progress completing the final steps to prepare for VSS Unity’s first rocket powered test flight from Spaceport America this November,” Virgin Galactic CEO Michael Colglazier said in a press release.

That next test flight is expected to occur between Nov. 19 and Nov. 23. It was previously planned for as early as Oct. 22.

Shares of Virgin Galactic rose about 2% in after hours trading. The stock closed up 6.3% at $19.17 a share ahead of the report.

Virgin Galactic reported an adjusted EBITDA loss of $66 million, up from a loss of $54 million in the previous quarter. The company booked $0 of revenue in the quarter, but did receive about 200 additional refundable deposits toward tickets. That brings its total number of $1,000 deposits to about 900, from about 700 in the second quarter.

“The report’s as unexciting as expected … they spent a little bit more money than last quarter, but still are sitting on a strong cash reserves,” Andrew Chanin, CEO of ProcureAM which holds Virgin Galactic in its Space ETF, told CNBC.

The company has about $742 million in cash on hand, after the company raised more than $440 million in a common stock offering in August.

Virgin Galactic said that it “is continuing to experience ongoing delays to its business and operations due to COVID-19, which has led to accumulated impacts to both schedule and cost efficiency.”

“This is expected to continue through the fourth quarter and in 2021, though the Company has continued to stay on track for its planned upcoming flights,” the company added.

A virtual rendering of the inside of Virgin Galactic’s spacecraft cabin, with six seats for passengers.

Virgin Galactic

Founded by Sir Richard Branson and taken public last year through a SPAC by Chamath Palihapitiya, the company is still in the development phase of its business. To date it’s completed two federally-recognized spaceflights, with the company expecting to conduct two more test spaceflights before it flies Branson.

Virgin Galactic has about 600 reservations on its books, most of which were sold at price of $200,000 to $250,000 a ticket several years ago. While it has not been selling tickets as the company finishes development, Virgin Galactic earlier this yearbegan a deposit program called “One Small Step.” Although it now has 900 of those deposits toward tickets, Virgin Galactic said it will end the “One Small Step” program at the end of this year and re-open ticket sales fully in 2021 after Branson’s flight. The company has not said how much tickets will cost once sales reopen. However, company executives have previously said that the high demand for tickets means Virgin Galactic expects to increase its prices substantially for first commercial flights.

Its next test spaceflight will have just two test pilots on board, although Virgin Galactic will generate some revenue from the flight as it will carry microgravity research payloads for NASA. Then the company will fly a second test spaceflight, with four “mission specialists” inside the spacecraft’s cabin.

Virgin Galactic stuck to the test flight schedule it gave in August, saying it still plans to fly Branson’s mission in the first quarter of next year. The company also said that it expects to roll out its second spacecraft in the first quarter, which will help Virgin Galactic fly more flights more often.

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Source: https://www.cnbc.com/2020/11/05/virgin-galactic-spce-earnings-q3-2020.html

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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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Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

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

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International: Top News And Analysis

CNBC International is the world leader for news on business, technology, China, trade, oil prices, the Middle East and markets.

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Source: https://www.cnbc.com/us-top-news-and-analysis/

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