Rocket Lab (NASDAQ:RKLB) Stock Breaks Above 50-Day Moving Average After Earnings Miss

Key Points

• Rocket Lab missed on earnings: It reported a quarterly loss of $0.12 per share versus the $0.07 loss analysts expected, but revenue of $267.8 million beat estimates and rose 72.7% year over year.
• Demand indicators were strong: backlog grew 52% sequentially to a record $3.57 billion, and the company’s fourth-quarter revenue forecast exceeded analyst expectations.
• Shares traded above their 50-day moving average, while investors also face risks from Neutron’s first launch being delayed until no earlier than 2027 and continued expected losses.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares passed above its 50 day moving average during trading on Tuesday following a stronger than expected earnings report. The stock has a 50 day moving average of $62.42 and traded as high as $63.77. Rocket Lab shares last traded at $62.71, with a volume of 31,978,836 shares.

The rocket manufacturer reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.05). The company had revenue of $267.83 million for the quarter, compared to analyst estimates of $257.21 million. Rocket Lab had a negative return on equity of 7.71% and a negative net margin of 25.73%.

Trending Headlines about Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Q3 revenue rose 72.7% year over year to $267.8 million, beating estimates. Backlog expanded 52% sequentially to a record $3.57 billion, reinforcing demand for Rocket Lab’s launch and space-systems business. Q3 results and outlook
• Positive Sentiment: Fourth-quarter revenue guidance of $270 million to $290 million came in above analyst expectations. The company also secured more than $515 million in Neutron launch contracts during Q3, bringing the rocket’s backlog to 16 missions and raising its base launch price to $70 million. Neutron launch contracts
• Neutral Sentiment: Some analysts remain constructive, citing Rocket Lab’s competitive position and growing backlog, although several lowered price targets after the results. Analyst commentary
• Negative Sentiment: The GAAP loss of $0.12 per share was wider than the roughly $0.07 loss analysts expected, while the company continued to forecast an adjusted EBITDA loss for Q4. The earnings miss appears to have overshadowed revenue growth and contributed to pressure on the shares. Q3 earnings reaction
• Negative Sentiment: Neutron’s first launch is now expected no earlier than 2027, delaying a key future growth catalyst and adding uncertainty around development costs and execution. Neutron delay and investor reaction

Wall Street Analyst Weigh In

A number of brokerages have weighed in on RKLB. Bank of America reduced their price target on Rocket Lab from $115.00 to $110.00 and set a "buy" rating on the stock in a research note on Monday, August 31st. Berenberg Bank assumed coverage on Rocket Lab in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $83.00 price objective for the company. KGI Securities upgraded Rocket Lab from a "neutral" rating to an "outperform" rating and set a $107.00 target price for the company in a research note on Monday, July 27th. Barclays reduced their target price on Rocket Lab from $85.00 to $82.00 and set an "overweight" rating on the stock in a research report on Tuesday. Finally, BTIG Research reiterated a "neutral" rating on shares of Rocket Lab in a research report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Rocket Lab has a consensus rating of "Moderate Buy" and a consensus price target of $100.10.

Insider Activity

In other Rocket Lab news, insider Frank Klein sold 35,558 shares of the business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $66.61, for a total transaction of $2,368,518.38. Following the transaction, the insider owned 925,737 shares in the company, valued at $61,663,341.57. The trade was a 3.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Arjun Kampani sold 6,034 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $66.65, for a total value of $402,166.10. Following the transaction, the senior vice president directly owned 250,917 shares in the company, valued at $16,723,618.05. This trade represents a 2.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 551,832 shares of company stock worth $34,940,037. Insiders own 8.40% of the company's stock.

Institutional Investors Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently bought and sold shares of RKLB. BlackRock Inc. purchased a new position in shares of Rocket Lab during the 2nd quarter valued at approximately $4,124,970,000. Bank of New York Mellon Corp acquired a new stake in Rocket Lab in the second quarter valued at $245,764,000. Bank of America Corp DE bought a new position in Rocket Lab during the 2nd quarter valued at $437,280,000. Voya Investment Management LLC boosted its stake in Rocket Lab by 26.3% during the 3rd quarter. Voya Investment Management LLC now owns 3,003,656 shares of the rocket manufacturer's stock valued at $209,295,000 after acquiring an additional 625,289 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Rocket Lab by 14.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer's stock valued at $278,262,000 after acquiring an additional 352,094 shares during the last quarter. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Lab Stock Up 6.5%

The firm has a market capitalization of $37.52 billion, a price-to-earnings ratio of -174.19 and a beta of 3.15. The stock has a 50 day moving average of $62.42 and a 200 day moving average of $78.68. The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01.

Rocket Lab Company Profile

Rocket Lab is a space company that provides launch services and spacecraft and satellite systems for commercial, civil, and national security customers. Founded in 2006 by Peter Beck, the company operates internationally, with headquarters in Long Beach, California, and launch operations in New Zealand and the United States. Its launch business centers on Electron, a small orbital rocket designed to carry satellites to space, and HASTE, a suborbital vehicle used for hypersonic test missions. Rocket Lab is also developing Neutron, a larger launch vehicle.

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