Updated Aug 10 at 10:05am ET.
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Rocket Lab reports its latest quarterly results today. Analysts are looking for revenue of about 230 million dollars and a loss of roughly 6 cents per share. While the company has beaten these expectations in half of its last eight reports, the numbers themselves are often less important than the progress of its business.
The two things that matter most for the long term are the development of Neutron, the company's new and larger rocket, and the growth of its satellite parts business. We are watching to see if Neutron remains on track for its first flight and if the company is successfully turning its 2.2 billion dollar backlog of orders into actual cash.
The company successfully launched its 13th rocket of the year from its New Zealand site, carrying a satellite for iQPS, a firm building a network of Earth-imaging satellites. This marks the 92nd flight for the Electron rocket, which is the company's smaller, established vehicle used for frequent, dedicated trips to space.
While the company is spending heavily to build a much larger rocket called Neutron, these routine Electron missions are the engine that keeps cash coming in. Maintaining a steady launch pace is vital for the company to prove it can reliably handle the growing backlog of orders it has already signed with customers.
Source: GlobeNewsWire
The U.S. Space Force awarded Rocket Lab a $397 million contract to build and launch satellites for its moving target indicator program. This program is designed to track objects on the ground or in the air from space, a critical capability for national defense.
This is a major win because it combines both sides of the company's business: building the satellites and providing the rocket to get them into orbit. By handling the entire mission, Rocket Lab can capture more of the total profit than if it were just the launch provider. This contract also adds significantly to the company's backlog, which is the total value of signed work it has yet to complete, providing more predictable revenue for the coming years.
Source: GlobeNewsWire
Rocket Lab signed a new deal to launch three dedicated missions for iQPS, a Japanese company building a constellation of radar-imaging satellites. This is the third multi-launch agreement between the two companies in less than a year, with the satellites set to fly on Rocket Lab's small Electron rocket.
This repeat business is a strong signal that Rocket Lab is the preferred partner for companies that need precise, dedicated orbits for their satellite networks. While the company is currently spending heavily to develop its larger Neutron rocket, these Electron contracts provide steady work and help prove the reliability of its launch business.
Source: GlobeNewsWire
The U.S. Space Force awarded the company a $266 million contract to provide 12 suborbital launches, with options for six more. This is the largest launch contract in the company's history. Suborbital launches are missions where a rocket reaches space but does not enter a full orbit around the Earth, often used for testing missile defense systems.
This win is a major milestone because it proves the company can win large, high-stakes government work beyond its standard satellite launches. It adds significant predictable revenue to the backlog, which is the total value of signed contracts yet to be completed, and reinforces its position as a primary partner for the U.S. military.
Source: GlobeNewsWire
Analysts have steadily raised their price targets throughout the summer as the company continues to secure major contracts and new technology wins. Most analysts, 16 of 21, rate the stock a buy with an average target suggesting 38% upside.
The company has beaten expectations for four straight quarters, and revenue is growing fast. It shows management is getting better at predicting its own growth as the business scales up.
| Expectation | |
|---|---|
| EPS | $-0.06 |
| Revenue | $232M |
