Intuitive Machines Inc. (LUNR) is a space company involved in exploration, infrastructure, and services. They focus on providing space products and services aiming to support sustained robotic and human exploration expeditions to the moon, Mars, and beyond. LUNR operates through four main business segments: Lunar Access Services; Orbital Services; Lunar Data Services; and Space Products and Infrastructure.
Incorporated in 2023, the company is known for its robust lunar program, situated in the “Space City” of Houston, Texas. Valued at $635.6 million by market cap, this Russell 2000 Index (RUT) stock has had a breakthrough year, gaining 97.3% in 2024 - but LUNR is now trading roughly 62% below its February high, set around the time of its landmark moon mission.
Intuitive Machines Hikes Revenue Guidance
Intuitive Machines released its Q2 results last month, with revenue of $41.4 million up 130% year over year, thanks largely to LUNR's OMES, LTVS, and JETSON low power nuclear satellite projects. The company reported an operating loss of $28.2 million, wider than last year's $13.2 million, due to the completion of the IM-1 mission.
For the full year, Intuitive Machines raised the low end of its revenue guidance, and now expects $210-$240 million in 2024 - indicating expectations for revenue to rise 2.6-3x over 2023.
LUNR ended Q2 with zero debt and a cash balance of $31.6 million, which it expects will be sufficient to fund its operations for the next 12 months.
The stock slipped following the Q2 report on Aug. 13, as revenue fell short of consensus estimates.
LUNR's New Contract with NASA
Last week, Intuitive Machines stock rallied as the company announced a new contract win with NASA worth $116.9 million to deliver six science and technology payloads to the moon’s South Pole. This contract is part of NASA’s Commercial Lunar Payload Services (CLPS) initiative, which also covered LUNR's February mission to the moon - the first U.S. lunar landing in over 50 years.
While the news helped LUNR close higher last week during a dismal stretch for the broader equities market, it's worth pointing out that LUNR isn't expected to achieve GAAP profitability until fiscal year 2026.
In the meantime, the company may need to raise capital to fund its ongoing cash burn, making Intuitive Machines a riskier and more speculative play in the short term.
What's the Analyst Forecast for LUNR Stock?
Analysts are very optimistic on the forecast for this space and satellite stock, as indicated by the unanimous “Strong Buy” rating among all five analysts in coverage.
The mean price target for LUNR is $9.80, indicating expected upside potential of 94% from Friday's close.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
