Rocket Lab (NASDAQ:RKLB) Issues Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• Rocket Lab reported a quarterly loss of ($0.13) EPS, missing the consensus estimate of ($0.07) by ($0.06), despite achieving a revenue of $144.50 million, outperforming the forecast of $135.42 million.
• The company's revenue showed a year-over-year increase of 35.9%, although it experienced a negative net margin of 45.87% and a negative return on equity of 56.25%.
• Rocket Lab's stock rose 1.1% to $44.69, with recent analyst upgrades raising price targets significantly, including a target increase from $35.00 to $54.00 by Cantor Fitzgerald.

Rocket Lab (NASDAQ:RKLB - Get Free Report) issued its quarterly earnings results on Thursday. The rocket manufacturer reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.06), Zacks reports. The firm had revenue of $144.50 million for the quarter, compared to the consensus estimate of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 56.25%. The business's revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.08) earnings per share. Rocket Lab updated its Q3 2025 guidance to EPS.

Rocket Lab Stock Up 1.1%

Shares of NASDAQ RKLB traded up $0.48 during trading hours on Friday, hitting $44.69. 39,118,574 shares of the stock were exchanged, compared to its average volume of 20,760,988. The company has a quick ratio of 1.72, a current ratio of 2.08 and a debt-to-equity ratio of 0.97. The company has a market cap of $20.62 billion, a PE ratio of -99.31 and a beta of 2.17. The firm has a fifty day moving average price of $37.55 and a 200-day moving average price of $27.85. Rocket Lab has a 12 month low of $5.03 and a 12 month high of $53.44.

Insider Activity

In related news, Director Merline Saintil sold 6,353 shares of the business's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $29.41, for a total transaction of $186,841.73. Following the completion of the transaction, the director owned 425,922 shares in the company, valued at $12,526,366.02. The trade was a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Frank Klein sold 44,885 shares of the business's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.66, for a total transaction of $1,196,634.10. Following the transaction, the insider owned 1,370,190 shares of the company's stock, valued at approximately $36,529,265.40. This trade represents a 3.17% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,130,995 shares of company stock worth $29,686,039. Insiders own 11.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Focus Partners Wealth increased its stake in Rocket Lab by 1.0% during the 1st quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer's stock valued at $1,206,000 after purchasing an additional 681 shares in the last quarter. Jones Financial Companies Lllp increased its stake in Rocket Lab by 53.8% during the 1st quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer's stock valued at $282,000 after purchasing an additional 5,507 shares in the last quarter. NewEdge Advisors LLC increased its stake in Rocket Lab by 1,812.1% during the 1st quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer's stock valued at $658,000 after purchasing an additional 34,882 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Rocket Lab by 13.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer's stock valued at $13,831,000 after purchasing an additional 90,758 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in Rocket Lab by 114.0% during the 1st quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer's stock valued at $3,117,000 after purchasing an additional 92,849 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Cantor Fitzgerald upped their price target on shares of Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a report on Friday. KeyCorp upped their price target on shares of Rocket Lab from $40.00 to $50.00 and gave the company an "overweight" rating in a report on Friday. Roth Capital upped their price target on shares of Rocket Lab from $25.00 to $35.00 and gave the company a "buy" rating in a report on Wednesday, May 28th. Stifel Nicolaus upped their price target on shares of Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a report on Tuesday. Finally, The Goldman Sachs Group initiated coverage on shares of Rocket Lab in a report on Monday, June 30th. They set a "neutral" rating and a $27.00 price target on the stock. Five research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Rocket Lab presently has an average rating of "Moderate Buy" and an average target price of $42.27.

About Rocket Lab

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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