Rocket Lab shares fell more than 6% in after-hours trading on November 9 after the space company reported a wider-than-expected quarterly loss. The decline came despite record revenue, a growing order backlog and rising demand for its upcoming Neutron rocket. (Sources: Asianet Newsable, TradingKey)
Revenue jumps 73% to record $268 million
Rocket Lab reported third-quarter revenue of $267.83 million, up 73% from a year earlier and above analysts' estimates of around $257 million. It marked the company's sixth consecutive quarter of record revenue, reflecting growth across its launch and space systems businesses.
Earnings miss puts pressure on RKLB stock
The company reported an adjusted loss of 12 cents per share, wider than analysts' expectations of a 7-cent loss. Higher research and development and operating expenses weighed on profitability, raising concerns among investors about the cost of scaling its business.
Rocket Lab's order backlog climbs 52% to $3.57 billion
Rocket Lab's backlog increased 52% sequentially to approximately $3.57 billion at the end of the September quarter. The company expects around $1.17 billion of this amount to convert into revenue over the next 12 months, providing visibility into future business.
Neutron launch price rises to $70 million
Rocket Lab secured more than $515 million in Neutron launch contracts during the quarter, covering eight missions. The company raised the rocket's base launch price to $70 million from $55 million for several missions, reflecting strong demand and tightening launch capacity.
Neutron launch bookings stretch into the 2030s
Neutron's launch backlog has reached 16 missions even before its maiden flight. With available launch slots extending into the 2030s, Rocket Lab is seeing strong demand from satellite constellation operators and government customers.
Neutron's maiden flight pushed to 2027
Rocket Lab is targeting Neutron's first launch no earlier than 2027 after identifying defects in the forward dome of its first-stage tank. A replacement is ready for assembly, but the company is awaiting completion of qualification testing before committing to a launch schedule.
Q4 revenue guidance beats estimates
Rocket Lab expects fourth-quarter revenue of $270 million to $290 million, above analysts' expectations of approximately $265 million. However, it forecast an adjusted EBITDA loss of $14 million to $20 million, highlighting the continued costs associated with expansion.
$150 million government loan commitment boosts expansion plans
Rocket Lab received a conditional $150 million loan commitment from the Department of War's Office of Strategic Capital. The funding is intended to support manufacturing capacity, recovery vessels and faster launch turnaround, strengthening the company's expansion plans. (Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times.)
