Rocket Lab (RKLB, Financial) announced its first-quarter revenue of $122.57 million, surpassing analysts' expectations of $121.37 million. This significant performance increase represents a 32% growth compared to the previous year. The company attributes this success to robust results in both its launch and space systems divisions, achieving near-record revenue levels.
Looking ahead, Rocket Lab anticipates continued strong performance with second-quarter revenue predictions ranging from $130 million to $140 million. This outlook underscores the company's diversified business strength amid complex geopolitical circumstances, showcasing the resilience of its comprehensive space operations model.
In recent years, Rocket Lab has undergone substantial restructuring, including multiple acquisitions and plans to expand into European markets. The company aims to enhance its alignment with business goals and meet U.S. Government security requirements by adopting a new holding company structure. This strategic move is expected to streamline risk management and reinforce Rocket Lab's growth in commercial, civil, and national defense sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Rocket Lab USA Inc (RKLB, Financial) is $24.60 with a high estimate of $33.00 and a low estimate of $14.35. The average target implies an upside of 6.51% from the current price of $23.10. More detailed estimate data can be found on the Rocket Lab USA Inc (RKLB) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Rocket Lab USA Inc's (RKLB, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rocket Lab USA Inc (RKLB, Financial) in one year is $16.08, suggesting a downside of 30.39% from the current price of $23.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rocket Lab USA Inc (RKLB) Summary page.
RKLB Key Business Developments
Release Date: February 27, 2025
- Annual Revenue: $436 million, a 78% increase year-on-year.
- Q4 2024 Revenue: $132 million, a 121% increase year-on-year.
- Launch Services Revenue: $42.4 million for Q4; $125.4 million for the full year, a 74% increase year-on-year.
- Space Systems Revenue: $90 million for Q4; $310.8 million for the full year, an 80% increase year-on-year.
- GAAP Gross Margin: 27.8% for Q4; 26.6% for the full year.
- Non-GAAP Gross Margin: 34% for Q4; 32% for the full year.
- Total Backlog: $1.07 billion, with $386 million in launch backlog and $681 million in Space Systems backlog.
- Q4 Operating Expenses: $88.4 million GAAP; $74.5 million non-GAAP.
- Cash and Equivalents: $484 million at the end of Q4 2024.
- Adjusted Loss: $23.2 million for Q4 2024.
- Q1 2025 Revenue Guidance: $117 to $123 million.
- Q1 2025 GAAP Gross Margin Guidance: 25% to 27%.
- Q1 2025 Non-GAAP Gross Margin Guidance: 30% to 32%.
- Q1 2025 Adjusted EBITDA Loss Guidance: $33 million to $35 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rocket Lab USA Inc (RKLB, Financial) achieved its highest annual revenue to date of $436 million in 2024, marking a 78% increase from the previous year.
- The company successfully executed a record number of 16 launches in 2024, maintaining a 100% mission success rate.
- Rocket Lab USA Inc (RKLB) signed over $450 million in new contracts in 2024, strengthening its backlog to over a billion dollars.
- The company made significant progress in its Space Systems segment, including the completion of twin spacecraft for NASA's escapade mission to Mars.
- Rocket Lab USA Inc (RKLB) is advancing its Neutron rocket program, with plans to address the medium launch market and support the deployment of an estimated 10,000 constellation spacecraft over the next decade.
Negative Points
- The timeline for the Neutron rocket's first launch has been pushed to the second half of 2025, indicating potential delays.
- Rocket Lab USA Inc (RKLB) faces challenges with supplier dependencies, which have caused some delays in the Neutron program.
- The company anticipates increased cash consumption in Q1 2025 due to Neutron-related investments and lower milestone payments.
- There is some uncertainty in the industry regarding defense programs under the new administration, which could impact future contracts.
- Gross margins in the launch business can be volatile quarter to quarter, influenced by customer mix and mission type.
