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Yahoo
19-05-2025
- Business
- Yahoo
One of the Best Space Stocks Just Reported a Big Change, and Its Stock Popped 35% in 1 Day
Investors flocked to Intuitive Machines after the company reported a loss and a revenue decline for Q1. Management reassured investors it is on track to hit its revenue target for the year. Intuitive Machines also promised to "incorporate IM-2 lessons learned" and hopefully land its next lunar lander right side up. 10 stocks we like better than Intuitive Machines › Every so often, you're right about a stock, and it makes you nervous about how long you can keep on being right. That's kind of how I feel looking at Intuitive Machines (NASDAQ: LUNR) stock right now. Back at the start of the month, if you recall, I said Intuitive Machines stock was a buy and could pop after earnings. And after Intuitive reported earnings this week, the stock did indeed go up. In fact, it went up a lot, surging nearly 35% at one point on the day after earnings, and still up nearly 28% as I type these words. And now I'm honestly not sure this stock is still a buy. Intuitive Machines' Q1 earnings report didn't feature a lot in the way of "earnings," necessarily, and it only reported $62.5 million in revenue. According to the good folks at The Fly, however, that was less than the $66.1 million in revenue that Wall Street analysts were predicting. It was also a 15% decline from the company's $73.2 million in Q1 2024 revenue. Operating costs of $72.6 million ate up all the company's revenue and left Intuitive with a $10.1 million operating loss for Q1. On the bottom line, losses were $11.4 million, or $0.11 per share, according to data from S&P Global Market Intelligence. That's the bad news. Now, here's the good: Intuitive Machines just announced a big change in its cash situation. Intuitive Machines generated positive operating cash flow for the first time in nearly two years in Q1 -- $19.4 million, and reported quarterly positive free cash flow of $13.3 million. The company is still FCF-negative for the past 12 months, and most analysts don't expect to see the company generating FCF consistently for another few years -- but Q1 improved its TTM performance considerably, and Intuitive now has at least a chance of reporting its first full year of positive FCF in 2025. Yes, a small chance. Most analysts still see Intuitive burning cash this year, but less than $2 million. But Intuitive is due to receive "IM-2 success payments" in Q2, which could potentially push the company over the finish line. Management is forecasting between $250 million and $300 million in total revenue this year, right in line with analyst forecasts. In other "IM-" news, the company confirmed that its next moon landing, IM-3, is on track to take place in the first half of next year, "and will incorporate IM-2 lessons learned" -- which hopefully means Intuitive has figured out how to keep its landers from toppling over after landing on the moon. Intuitive is also making progress on its much bigger, much more valuable, $4.8 billion contract to build a Near Space Network for satellite communication between the Earth and moon, completing two "milestones" and receiving funding for two more. With Intuitive Machines stock up so much (again, about 28% over just the past few days), and up so quickly after earnings, I'm a bit less enthusiastic about buying more shares (I already own a few) now that the good news is out. True, the chance that Intuitive might report positive full-year free cash flow in 2025 -- a full three years earlier than Wall Street was expecting -- could be another great catalyst to lift the stock. That said, the main project I'm counting on to drive the company's success is the $4.8 billion NSN NASA contract. That one stretches over 10 years, and appears to be rolling out only slowly, with only $9 million in revenue booked in Q1, and only $18 million more coming in Q2. It's a big-dollar contract, with a long timeline. These two factors combined create a risk that a budget-constrained NASA might be forced to cancel the contract at some point in the future, dramatically limiting growth prospects for Intuitive Machines -- and potentially crashing the stock as well. While I don't think that will happen, it's a risk, and it's one investors in Intuitive Machines stock should keep in mind. The best way to limit that risk is to buy Intuitive Machines stock on a pullback, when it looks cheap again. Before you buy stock in Intuitive Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Rich Smith has positions in Intuitive Machines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. One of the Best Space Stocks Just Reported a Big Change, and Its Stock Popped 35% in 1 Day was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Intuitive Machines rockets 35% after lunar landmark
Intuitive Machines (NASDAQ:LUNR) surges 35% to a two-month high after reporting $13.3 million in free cash flow and completing the southernmost lunar landing in history. The company posted Q1 revenue of $62.5 million, missing the $66.1 million Wall Street consensus, but gross margin climbed to 11%, marking a third straight quarter of positive margins as Commercial Lunar Payload Services, Lunar Terrain Vehicle Services and Near Space Network Services all saw growth and a shift toward higher-margin service offerings. Warning! GuruFocus has detected 4 Warning Signs with LUNR. CEO Steve Altemus said, We believe Intuitive Machines brings proven performance and speed to market, pointing to successful Jet Propulsion Laboratory rover tests ahead of the IM-3 mission. Intuitive Machines generated $19.4 million in operating cash and milestone payments and ended the quarter with $373.3 million in cash following a warrant redemption. The company reaffirmed its 2025 revenue forecast of $250 million to $300 million and expects to reach positive adjusted EBITDA on a run-rate basis by year-end, setting the stage for full-year profitability in 2026. Compared to many space infrastructure peers still burning cash, Intuitive Machines's clear path to profitability stands out. Management is also diversifying beyond lunar missions into national security and microgravity applications. As the sole contractor on the Air Force Research Laboratory's JETSON nuclear propulsion program and recipient of a $10 million Texas Space Commission grant, the firm is advancing in-space nuclear capabilities and reentry research. Investors should note that strong cash flow, margin expansion and high-profile government contracts could drive sustainable growth despite the top-line miss. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-04-2025
- Business
- Yahoo
SpaceX to launch new Intuitive Machines moon lander, lunar satellites in 2027
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intuitive Machines may have crashed its latest moon lander on the lunar surface, but that's not keeping the company down for long. The Houston-based company has picked SpaceX to launch IM-4, its fourth moon lander, on a Falcon 9 rocket in 2027 alongside two relay satellites for a NASA lunar communications network. The news comes just weeks after the company's IM-2 moon lander crashed near the moon's south pole, and as the firm continues work on its third moon lander (yes, it's called IM-3), which is expected to launch in 2026. 'Lunar surface delivery and data relay satellites are central to our strategy to commercialize the Moon," Intuitive Machines CEO Steve Altemus said in a statement Tuesday (April 8). "We plan to deploy the first of five lunar data relay satellites on our third mission, which will introduce our pay-by-the-minute service. The two additional satellites on our fourth mission are intended to scale that service, followed by two additional deployments to complete the constellation and fully support NASA and commercial lunar operations." The relay satellites will support NASA's Near Space Network Services contract, Intuitive Machines wrote. Intuitive Machines' IM-4 moon lander will carry six NASA payloads under a contract with the agency's Commercial Lunar Payload Services program. A new drill experiment built by the European Space Agency to hunt for water near the moon's south pole, will be aboard. Intuitive Machines' first moon lander, called IM-1 Odysseus, tipped over after breaking a landing leg while attempting to land in 2024. The second lander, the IM-2 Athena, fell on its side during a lunar south pole landing attempt on March 6. The IM-3 moon lander is under construction now.
Yahoo
24-03-2025
- Business
- Yahoo
Intuitive Machines (LUNR) Stock Jumps as Revenue Climbs 79% in Q4
Intuitive Machines (LUNR, Financial) shares surged more than 20% on Monday morning after the space technology firm reported a 79% rise in fourth-quarter revenue, driven by increased contract activity. Warning! GuruFocus has detected 5 Warning Signs with LUNR. The company secured additional agreements for its direct-to-earth services, which facilitate communication and navigation for spacecraft, including lunar landers and orbiters. These services are integral to NASA's Artemis program and broader lunar exploration efforts. The latest contracts position Intuitive Machines to tap into a potential $4.8 billion market. Shares of the Houston-based firm have dropped 61% this year, largely due to complications with its second moon landing. Earlier in March, the Athena lander tipped onto its side following a laser rangefinder issue, mirroring a similar problem from its first lunar mission. Although the setback occurred, the company clearly stated that its main revenue comes from space contracts rather than launch missions. Revenue rose to $54.6 million during the fourth quarter of 2019 compared to $30.7 million in the past year. Intuitive Machines has maintained the official launch schedule for its third lunar mission, IM-3, which will take place during the upcoming year. The company remains focused on expanding its space services and advancing its upcoming missions. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
24-03-2025
- Business
- Yahoo
Intuitive Machines shares surge as space contracts fuel quarterly revenue
By Kritika Lamba (Reuters) - Intuitive Machines' shares surged 20% on Monday after the space company posted a 79% jump in its fourth-quarter revenue on the back of higher contracts. The company secured additional contracts for direct-to-earth services that position it to capitalize on the contract's $4.8 billion maximum potential value. Intuitive Machines' direct-to-earth services offer communication and navigation for spacecraft like lunar landers and orbiters, linking them to Earth's ground stations to support NASA's Artemis program and sustainable lunar exploration. Shares of Intuitive Machines have fallen 61% this year largely due to issues with its second moon landing. Earlier this month, Athena landed on its side after problems with its laser rangefinders, mirroring the same issue as its first moon lander. "While the landing of the IM 2 mission is unfortunate, we remind investors that it is not as material as the market may think. LUNR's primary source of revenue is not from its launch missions, but rather from its space contracts," said Andres Sheppard, senior equity analyst at Cantor Fitzgerald. The company posted fourth-quarter revenue of $54.6 million, compared with $30.7 million a year earlier. The Houston, Texas-based company also confirmed that its third moon lander mission, IM-3, remains on track for launch in about a year. Sign in to access your portfolio
