Benzinga | Oct 15, 2021 08:56AM EDT

Why Virgin Galactic Shares Are Falling Back To Earth Today

Virgin Galactic Holdings Inc (NYSE:SPCE) is trading significantly lower Friday after the company said the enhancement period for VMS Eve and VSS Unity will begin approximately one month later than anticipated, and commercial service is now expected to commence in the fourth quarter of 2022.

Virgin Galactic has been performing routine tests and analyses to update its material properties database.

One of the recent tests flagged a possible reduction in the strength margins of certain materials used to modify specific joints and will require further physical inspection.

"Our decisions are driven by detailed and thorough analysis, and we fly based on the most accurate and comprehensive data available. Virgin Galactic vehicles are designed with significant margins for safety, providing layers of protection that far exceed loads experienced and expected to occur on our flights," said Michael Colglazier, CEO of Virgin Galactic.

Colglazier continued, "The re-sequencing of our enhancement period and the Unity 23 flight underscores our safety-first procedures, provides the most efficient path to commercial service, and is the right approach for our business and our customers."

Virgin Galactic is set to announce its third-quarter financial results after the market closes on Nov. 8.

SPCE Price Action: Virgin Galactic has traded as high as $62.80 and as low as $14.27 over a 52-week period.

The stock was down 16.40% at $20.12 at time of publication.

Photo: courtesy of Virgin Galactic.