Spire Global, Inc. (SPIR) reports second-quarter loss, highest revenue estimates

Spire Global, Inc. (SPIR) reported quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.10. For comparison, a year ago the loss was $0.09 per share. These numbers have been adjusted for one-off items.

This quarterly report presented an earnings surprise of 30%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.10, delivering a surprise of 16.67%.

The company has topped consensus EPS estimates three times over the last four quarters.

Spire Global, Inc., which belongs to the Zacks Aerospace – Defense industry, posted revenues of $26.49 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 7.83%. For comparison, revenues from the previous year amounted to $19.4 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.

Shares of Spire Global, Inc. have lost about 26.5% since the beginning of the year compared to the S&P 500 index’s gain of 17.2%.

What’s next for Spire Global, Inc.

Although this year Spire Global, Inc. has underperformed the market so far, the question that arises for investors is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Leading up to the earnings release, the trend in estimate revisions for Spire Global, Inc. is mixed. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) stock. Therefore, the company’s stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$0.09 on revenue of $27.19M for the coming quarter and -$0.41 on revenue of $106.72M for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, the Aerospace and Defense industry is currently in the top 37% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Sidus Space, Inc. (SIDU), another company in the same industry, is yet to release earnings for the quarter ended June 2023. The earnings are expected to be released on August 14.

The company is expected to report quarterly loss of $0.06 per share in the upcoming report, representing a year-over-year change of +60%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

Sidus Space, Inc. revenues are expected to be will amount to $2.3 million, an increase of 24.3% compared to the same quarter last year.

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