The stock of SpaceX (SPCX) is up 7% after the commercial space company reported quarterly financial results that surpassed Wall Street’s expectations.
The company led by Elon Musk, which made its market debut in June, reported third quarter
earnings per share (EPS) of $0.35 U.S., which blew past the $0.13 U.S. forecast by analysts.
Revenue in the July through September quarter totaled $14.58 billion U.S., which beat the consensus estimates of $12.72 billion U.S. Sales were up 161% from the previous year.
On an earnings call with analysts and media, Musk said he’s considering a combination between SpaceX and electric vehicle maker Tesla (TSLA), which he also leads.
A SpaceX and Tesla combination would be the largest merger in history, and the two companies have struck internal committees to discuss a consolidation, said Musk.
SpaceX also highlighted its growing artificial intelligence business unit. The A.I. segment’s revenue rose ninefold to $7.56 billion U.S. in the latest quarter from $813 million U.S. last year.
In terms of guidance, SpaceX forecast revenue in the current quarter of $33 billion U.S. to $37 billion U.S., which beat the average analyst estimate of $22.2 billion U.S.
Musk said that SpaceX is aiming for $100 billion U.S. in annualized revenue by the end of this year, and that annual recurring revenue could reach $1 trillion U.S. by the end of 2027.
Prior to today (Oct. 21), SPCX stock had declined 8% since holding its initial public offering (IPO) in June of this year. The shares are currently trading at $158.59 U.S.
Tech Insider
