Rocket Lab Announces Earnings Date Amid Revenue Projections

Long Beach, California – Rocket Lab USA, Inc. is set to report its first-quarter 2025 earnings on May 8, 2025, after the market closes. Investors are particularly interested in this report as the company anticipates a revenue of between $117 million and $123 million, marking a projected 29% increase from the previous year.

Last quarter, Rocket Lab boasted a robust order backlog exceeding $1 billion, primarily fueled by its Space Systems division. This division makes up the majority of the backlog, while Launch Services comprise the remainder. Investors will be watching closely to see if this backlog continues to expand, especially with the company’s recent introduction of the “Flatellite,” a mass-producible satellite optimized for large-scale constellations.

The Flatellite is designed to provide high-power, secure connectivity for government and commercial clients and can be stacked for more efficient launches. However, the company has faced some hurdles, notably the delayed launch of its larger Neutron rocket, now scheduled for the latter half of 2025.

Despite these challenges, analysts remain optimistic about Rocket Lab’s growth potential. A five-star Stifel analyst has maintained a Buy rating with a price target of $27, suggesting that although delays have occurred, they do not detract from the company’s overall growth narrative. KeyBanc Capital Markets is also optimistic, keeping an Overweight rating with a price target of $28.

Looking to the immediate future, options traders show a mixed expectation for Rocket Lab’s performance following the upcoming earnings report. The at-the-money straddle indicates a volatility estimation surrounding the $22 strike price, with call options priced at $1.25 and put options at $1.28.

The Zacks Consensus Estimate anticipates revenues of approximately $120.7 million for Rocket Lab, which would be a significant 30.1% increase from the same quarter last year. However, the bottom line is expected to reflect a loss of 10 cents per share, compared to a loss of 9 cents from the previous year.

Historically, Rocket Lab has demonstrated a decent earnings surprise track record, exceeding estimates in three of its last four quarters. However, its current Zacks Rank of #4 (Sell) and an Earnings ESP of +33.25% do not provide a definitive signal for an earnings beat this time.

Analysts note that while solid revenue from both the Launch Services and Space Systems units could contribute positively to overall results, increased operating expenses from Neutron program development and higher IT-related costs could pressure profitability.

In light of a predicted rapid growth in the space economy, projected to reach $1.8 trillion by 2035 according to a World Economic Forum report, the outlook for companies like Rocket Lab remains intriguing. However, potential investors are advised to consider current high operating expenses and a recent class-action lawsuit regarding alleged disclosures about Neutron rocket delays before making investment decisions.