Rocket Lab, a competitor to SpaceX, saw its shares surge on Wednesday following impressive third-quarter results. The company posted a net loss of 10 cents per share, widening from a loss of 8 cents last year. However, revenue increased by 55% to $105 million, exceeding expectations of $102.3 million.
Rocket Lab CEO Peter Beck highlighted the company’s comprehensive capabilities in the space sector. “Rocket Lab is an end-to-end space company,” Beck stated. “We provide the ride to space with our launch vehicles, and we build the spacecraft to do the work in orbit.”
The company announced that its Electron rocket is the third most-frequently launched rocket in the world for 2024, behind only SpaceX and China.
Rocket Lab expects Q4 revenue between $125 million and $135 million, surpassing estimates of $121 million. As part of its growth strategy, Rocket Lab has signed a contract with a commercial satellite constellation operator for its medium-lift rocket, Neutron.
rocket Lab’s Q3 financial growth
This includes two scheduled launches in mid-2026. The reusable Neutron rocket is expected to make its debut launch in 2025, with intentions to participate in the U.S. Government’s National Security Space Launch program, a contract valued at $5.6 billion over five years. Rocket Lab predicts that more than 10,000 satellites will require launch services by 2030, with the total addressable market projected to reach approximately $10 billion.
The company’s stock pared its gains to 28% by Wednesday afternoon after initially spiking over 41% in early trade. Despite this fluctuation, the stock closed down less than 1% during Tuesday’s regular session. Several investment firms adjusted their price targets for Rocket Lab following the earnings report.
Roth MKM analyst Suji Desilva raised the price target to $25 from $7, citing strong Q3 results and promising Q4 guidance. Stifel increased its target to $22 from $15, pointing to the company’s robust earnings and its first launch contract for the Neutron rocket. As Rocket Lab continues to make strides in the aerospace industry, its stock appears poised for continued success, driven by solid earnings, strategic contracts, and future projects on the horizon.
