What happened
Beginning the week on an inauspicious note, satellite manufacturer Terran Orbital (LLAP -6.90%) reported first-quarter 2023 financial results on Monday after the market closed. Disappointed with the company's results, investors have punished the stock this week. But that's not the only catalyst for the sell-off. On Tuesday, investors learned of two analysts who have turned pessimistic about the space stock's prospects.
From the close of last Friday's trading session to the end of trading yesterday, shares of Terran Orbital have plunged 19.8%, according to data provided by S&P Global Market Intelligence.
So what
Coming up short of analyst's estimates that it would book Q1 2023 sales of $31 million, Terran Orbital reported $28.2 million on the top line. While the company's first-quarter sales increased 115% year over year, investors placed more emphasis on the company's inability to meet analysts' expectations. Similarly, investors were disappointed with the bottom of the company's income statement. While analysts expected Terran Orbital to report earnings per share of negative $0.19, the company actually incurred a $0.38 loss per share.
The day after Terran Orbital reported earnings, analysts adopted bearish outlooks on the stock. Erik Rasmussen, an analyst at Stifel, trimmed the firm's price target to $7 from $8, and Mike Crawford, an analyst at B. Riley Financial, cut his price target to $7.50 from $10.
Now what
While Terran Orbital didn't report Q1 2023 results that were out of this world, it's not as if investors should completely dismiss this space stock. The company reported a backlog of over $2.5 billion at the end of the first quarter -- a 1,300% increase over that which it had at the end of 2022.
