Latest news with #IntuitiveMachines'
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
13-04-2025
- Business
- Yahoo
Intuitive Machines (NasdaqGM:LUNR) Posts Positive 2025 Revenue Guidance
Intuitive Machines reported a 12% increase in its share price over the past week, likely influenced by several significant developments. The release of its Q4 2024 earnings showed sales growth but a net loss, which might have been somewhat counterbalanced by the positive revenue guidance for 2025. Additionally, the company's successful closure of a private placement could be perceived as a vote of confidence in its future prospects. These factors added weight to the broader market trend, which also saw a climb of 5% during the same period. The company's performance was thus aligned with the broader upward market movement. Every company has risks, and we've spotted 1 possible red flag for Intuitive Machines you should know about. Find companies with promising cash flow potential yet trading below their fair value. Over the past year, Intuitive Machines' total shareholder returns, including share price and dividends, amounted to a substantial 51.97% increase. This strong performance exceeded both the US market's return of 3.6% and the US Aerospace & Defense industry's 19.4% gain over the same period. Such a significant return indicates a robust investor confidence in the company's prospects despite its unprofitability. The recent increase in share price, with a 12% gain in just one week, aligns with this overall positive trend and reflects investor optimism surrounding recent revenue guidance for 2025 and other strategic achievements. However, the company's financials indicate ongoing challenges, with increasing net losses even as sales grew substantially. Analysts expect revenue growth of 18.9% per year, which, though above the market average of 8.3%, is slower than the anticipated earnings growth of 95.69% annually. Despite these positive growth expectations, the current share price remains below the consensus analyst price target, representing a perceived undervaluation as the market awaits a potential turnaround in profitability. Assess Intuitive Machines' previous results with our detailed historical performance reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGM:LUNR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
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
09-04-2025
- Business
- Yahoo
Should You Buy Intuitive Machines Stock While It's Trading Below $8?
It's been just over a year since Intuitive Machines (NASDAQ: LUNR) made history as the first private company to achieve a successful lunar landing. The mission marked a milestone in commercial space exploration, but more importantly, it solidified the company's position as a leader in the burgeoning industry with proven technical capabilities. Despite a strong growth outlook fueled by several high-profile contracts, shares of Intuitive Machines have cratered at the start of 2025, trading down 60% year to date at the time of this writing amid the broader stock market sell-off. With the stock now trading below $8, is it a buy? Here's what you need to know. Intuitive Machines does not launch rockets itself but instead designs, builds, and operates spacecraft, such as its lunar landers. For its groundbreaking February 2024 IM-1 mission, the company's Odysseus Nova-C lander rode a SpaceX Falcon 9 rocket -- an approach that allows it to concentrate on its core strengths in payload delivery, lunar surface infrastructure, mobility and robotics, satellite operations, and data communications services. The company aims to advance its technology steadily, eyeing a space infrastructure market opportunity that experts project will grow to $1.8 trillion by 2035. The early financial results have been impressive. In 2024 (covering the full year ended Dec. 31) Intuitive Machines' total revenue reached $228 million, nearly triple the 2023 result amid multiple contract awards and a close partnership with NASA, ending the year with a $328 million backlog. Projects fueling Intuitive Machines' growth include the Commercial Lunar Payload Services program, which builds on IM-1's success with IM-2's South Pole landing earlier this year to prospect for water. Two more lunar missions are slated through 2027. There is also the ongoing Omnibus Multidiscipline Engineering Services contract that further supports NASA with broad operational expertise. For 2025, the company projects revenue of $250 million to $300 million, a solid 20% annual increase. While Intuitive Machines is not yet profitable, management's guidance suggests a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) run rate by the end of the year, and for 2026, an encouraging sign of more sustainable fundamentals. This is backed by a robust balance sheet, with $385 million in cash and zero debt as of March 13, ensuring ample liquidity to drive its ambitions. One of the attractions of Intuitive Machines as an investment is that, despite uncertainties over the U.S. economy's strength and the looming impact of Trump administration trade tariffs, its business profile and operating tailwinds remain largely insulated from these dynamics. Its multiyear NASA contracts, funded at the federal level, ensure project continuity regardless of how consumer spending or GDP evolves, providing valuable stability in the early stages of a fast-evolving space exploration industry. While a severe economic downturn could pressure NASA to reassess future projects or limit private sector opportunities, it's business as usual for now. Looking ahead, key catalysts could reignite investor enthusiasm and boost Intuitive Machines' battered stock price. The IM-3 mission, set for early 2026, will launch the first of five data relay satellites under the NASA Near Space Network contract, marking its entry into lucrative high-bandwidth transmission solutions as part of its space infrastructure-as-a-service offerings. Later in 2025, NASA's decision on the $4.6 billion Lunar Terrain Vehicle Services contract, spanning 15 years through 2040, could be a game-changer for Intuitive Machines, one of three finalists. Additional private sector engagements and deployment announcements would likely further bolster its growth trajectory to lift investor sentiment. I'm bullish on Intuitive Machines and see the recent stock price weakness as a chance for investors to buy the dip before a potential rebound. With the stock trading approximately 5 times its estimated 2025 revenue, the forward price-to-sales (P/S) ratio highlights compelling value for an industry pioneer with substantial long-term potential. The rally from here may not shoot straight into orbit, but the company has the pieces in place to reward shareholders over the long run. A small position in the stock, built through dollar-cost averaging to manage near-term volatility, could work well within a diversified portfolio. 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 $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% 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 April 5, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Intuitive Machines Stock While It's Trading Below $8? was originally published by The Motley Fool
Yahoo
03-04-2025
- Business
- Yahoo
Intuitive Machines Says It Has a "Fortress-Like Balance Sheet." Is It True?
Lunar exploration company Intuitive Machines (NASDAQ: LUNR) shot up like a rocket after reporting earnings last week (well, it did before an inflation- and tariff-inspired temper tantrum crashed the stock market on Friday). If you own Intuitive stock, you probably know this already. What you may not realize, though, is that Intuitive Machines' stock rocketed higher not because of its despite them. Rather than its 30% one-day share price gain being inspired by an "earnings beat," Intuitive Machines actually missed its earnings numbers. And it missed on guidance, too. Heading into the fourth quarter, Wall Street analysts forecast no profits for Intuitive Machines but $55.8 million in quarterly sales. The company sadly reported only $54.7 million, albeit this was up 79% year over year. The worse news is that management forecasted that in fiscal 2025, it would generate only $250 million to $300 million in sales for the year. That's well short of the $342.5 million in annual sales that Wall Street was modeling. Despite the weak Q4 numbers and the even weaker guidance, though, investors bought Intuitive Machines stock hand over fist last week. Why? Basically, because Intuitive was able to get investors excited about its even longer-term prospects. CEO Steve Altemus describes Intuitive Machines' current status thusly: "Financially secure, debt-free ... ready to take the next leap [and] with a fortress-like balance sheet." From this position, management plans to seek "the highest-return opportunities" as it expands its business from delivering payloads to the moon to building a new communications system linking the moon and Earth. I don't know about you, but when I read that, it's the phrase "fortress-like balance sheet" that jumped out to me. For the past several years, the overarching theme of space stocks similar to Intuitive Machines -- which went public in special purpose acquisition company (SPAC)-sponsored initial public offerings (IPOs) at inflated valuations and years before most had any chance of earning profits -- has been a tale of burning cash, selling shares to raise more then burning through that cash as well. Suffice it to say that finding a space stock with a "fortress-like balance sheet" sufficient to carry the company all the way to profitability and positive free cash flow is something I find very intriguing. But is it true? Let's take a look at the numbers. Intuitive Machines ended 2024 with $210 million in the bank. Redeeming its warrants earlier this year (i.e., encouraging holders to cash in their warrants for stock) nearly doubled those cash reserves, lifting Intuitive to $385 million in cash. Now, Intuitive reported $347 million in net losses for 2024, which doesn't sound great. But actual cash burn (negative free cash flow) was less than $68 million, down 10% from the $75 million burned in 2023. Assuming even just steady-state cash burn from here on out, this would imply Intuitive Machines has at least five years of smooth sailing before cash starts to get right. Granted, looking out over the next few years, analysts who follow Intuitive anticipate that capital spending will rise modestly as the company continues refining its lunar landers for NASA and builds out its Near Space Network (NSN) for Earth-to-moon communications under the $4.8 billion, 10-year NASA contract it won last year. Still, we're probably talking capex spending only in the range of $50 million to $65 million a year, according to data from S&P Global Market Intelligence. Meanwhile, analysts see money starting to flow into Intuitive from the NSN contract as early as 2027 (when positive operating cash flow could pass $60 million). Long story short, here's how I'm looking at Intuitive Machines' stock and its "fortress-like balance sheet" today: The best-case scenario is that the company continues to burn cash this year and next but reaches positive free cash flow in two years, 2027. The worst-case scenario is that the company needs more time to become cash-self-sufficient- but it's got cash reserves sufficient to last for five years. While not generating positive free cash flow yet, I see a clear path to Intuitive Machines getting there. This, in a nutshell, is why I've personally decided to buy Intuitive Machines stock and why I'll buy more on any (unjustified) dips going forward. 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $664,271!* Now, it's worth noting Stock Advisor's total average return is 812% — a market-crushing outperformance compared to 163% 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 April 1, 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. Intuitive Machines Says It Has a "Fortress-Like Balance Sheet." Is It True? was originally published by The Motley Fool
