Shares of Rocket Lab USA (RKLB) sank in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at -$0.10, which missed analysts’ consensus estimate of -$0.09 per share. However, sales increased by 59.3% year-over-year, with revenue hitting $132.39 million. This beat analysts’ expectations of $130.57 million.
Rocket Lab achieved quite a few milestones in its launch and space systems business in 2024. Indeed, its Electron rocket set a new record with 16 launches, which was a 60% increase from the previous year. The company also secured over $450 million in new contracts and made significant progress on its Neutron rocket, with a debut launch planned for the second half of 2025.
Founder and CEO Sir Peter Beck believes that this momentum positions Rocket Lab to become a comprehensive space company that offers end-to-end services that include its own satellite service. Interestingly, the company’s recent introduction of its Flatellite platform, which is a mass-producible satellite design, is seen by Beck as a strategic step towards potentially operating its own satellite constellation in the future.
2025 Outlook
Looking forward, management has provided the following guidance for Q1 2025:
- Revenue of between $117 million and $123 million versus analysts’ estimates of $135.7 million
- Adjusted EBITDA loss of $33 million to $35 million
- Non-GAAP gross margin between 30% and 32%
As we can see, the company’s revenue outlook is worse than expected, which likely led to the after-hours move in the stock price.
Is RKLB Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on five Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 336% rally in its share price over the past year, the average RKLB price target of $27.08 per share implies 35% upside potential.
