|
|
|
|
|||||
|
|
|
Intuitive Machines, Inc. LUNR is slated to report first-quarter 2025 results on May 13, before market open.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $59.4 million, implying an 18.7% decline from the year-ago quarter's reported figure. The consensus mark for the bottom line is pegged at a loss of 10 cents per share, indicating an improvement from a loss of 21 cents reported in the prior-year quarter. The bottom-line estimate, however, has deteriorated from a loss of five cents per share in the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
LUNR holds a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three out of the last four consecutive quarters and missed in one. The stock’s average earnings surprise is 69.92%.
Our proven model does not conclusively predict an earnings beat for LUNR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
LUNR has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the soon-to-be-reported quarter, solid revenue generation from providing lunar payload services for NASA and other commercial payload contracts associated with the IM-1 and IM-3 lunar payload missions is expected to have boosted Intuitive Machines' top-line performance.
Moreover, in March 2025, Intuitive Machines' second lunar mission, IM-2, experienced a significant setback when its Athena lander tipped over upon landing near the Moon's south pole. This led to the premature conclusion of the mission and is likely to adversely impact LUNR’s first-quarter results.
On the cost front, higher selling, general and administrative expenses due to an increase in public company costs, employee compensation benefits and rent on the company’s new corporate headquarters are likely to have had some negative impact on its earnings performance.
Nevertheless, profit margin earned from business growth is likely to have bolstered the company’s bottom line in the first quarter.
In January 2025, LUNR announced that it was awarded a study contract from NASA to advance lunar logistics handling and offloading, as well as surface cargo and mobility, under the agency’s Next Space Technologies for Exploration Partnership (NextSTEP). These contracts are likely to have pushed up the company’s order book for the first quarter and thereby its backlog count, which is expected to get duly reflected in its upcoming results.
Intuitive Machines' shares have surged a solid 52.3% in the past year compared with the Zacks Aerospace-Defense industry’s growth of 7.3%. It has also outperformed the broader Zacks Aerospace sector’s growth of 11.8% and the S&P 500’s rise of 8.4% during the same period.
Other defense players, such as The Boeing Company BA and Embraer ERJ, also delivered a stellar performance on the bourses. BA and ERJ shares have risen 9.1% and 82.3%, respectively, over the past year.
Regarding valuation, LUNR’s forward 12-month price-to-sales (P/S) is 5.24X, a premium to its industry’s average of 2.02X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry. The stock’s forward 12-month is also stretched compared with its one-year median.
On the contrary, its industry peers are trading at a discount. While Boeing is trading at a forward 12-month P/S of 1.66X, Embraer is trading at 1.15X.
With the market for space exploration exhibiting solid growth trends in recent times, backed by investments from both private companies and governments, stocks like LUNR are rallying.
Notably, LUNR is currently working on its largest lander, the Nova-M, designed to transport 5,000-7,500 kilograms of payload to the Moon’s surface. Upon launch, this innovation should generate robust revenues for the company.
However, the company is still in the preliminary stages of developing its full space infrastructure. In case of failure to demonstrate the reliability of its products and services through a successful lunar landing or delays in completing specific space missions, its results of operations might suffer.
Moreover, the company’s Return on Capital was lower than that of its industry. This indicates that LUNR is not effectively earning profits from its capital compared with its industry.
Despite LUNR’s solid performance at the bourses, it is likely to disappoint its investors with its first-quarter results, taking into account its breakeven earnings ESP and the downward revision observed in its earnings estimate. Considering this, along with the stock’s unfavorable Zacks Rank and premium valuation, investors interested in LUNR may consider letting it go before tomorrow.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite