Rocket Lab (NASDAQ: RKLB) is poised to unveil its financial results for the fourth quarter, with expectations for record revenue figures. Analysts are closely watching for updates on recent contract acquisitions and the company's ambitious launch schedule. This anticipated report follows a consistent trend of Rocket Lab outperforming revenue predictions, and the aerospace firm has hinted at an even more active year ahead.
As Rocket Lab prepares to release its fourth-quarter earnings, market analysts project the company will achieve a remarkable revenue of $178.07 million. This figure represents a significant increase from the $132.39 million recorded in the same period last year. Impressively, Rocket Lab has a strong track record of exceeding revenue estimates, having done so for six consecutive quarters and in seven out of the last ten reporting periods. If the company meets this projection, it will mark the third consecutive quarter of setting a new personal best for quarterly revenue, surpassing the $155.1 million achieved in the third quarter.
Despite the projected revenue growth, analysts forecast a loss of nine cents per share for the fourth quarter, an improvement from the ten-cent loss reported a year prior. Rocket Lab has either beaten or met earnings per share estimates in seven of the last ten quarters. The company's own guidance for the fourth quarter places revenue within the range of $170 million to $180 million, indicating confidence in its performance.
Analyst sentiment surrounding Rocket Lab has been varied. Goldman Sachs maintained a Neutral rating while increasing its price target from $47 to $69. Bank of America Securities upheld its Buy rating, significantly raising the price target from $60 to $120. Morgan Stanley upgraded the stock from Equal-Weight to Overweight, with a revised price target of $105. Conversely, KeyBanc downgraded Rocket Lab from Overweight to Sector Weight, without providing a specific price target. These diverse ratings reflect the dynamic nature of the space industry and the varied interpretations of Rocket Lab's future prospects.
Key aspects to monitor in the upcoming fourth-quarter results include updates on contract wins and the progress of rocket launches. In the third quarter, Rocket Lab secured 17 Electron launch contracts and expressed confidence in exceeding its annual launch record in the fourth quarter. The earnings call will likely shed light on the success of these launches and any additional contract acquisitions. Furthermore, insights into the first quarter of the new year, which saw the 80th and 81st launches on January 22 and January 30 respectively, are expected. CEO Peter Beck highlighted these two launches in eight days as a testament to the demand for Electron and the dedication of his team, predicting an even busier launch schedule for the future. The company may also provide details on its involvement in the Pentagon's SHIELD contract under the Golden Dome initiative and address any recent launch setbacks, such as the scrubbed HASTE launch.
In terms of market performance, Rocket Lab's stock closed at $70.20, up 0.33%, on Wednesday. This falls within its 52-week trading range of $14.72 to $99.58. While the stock has seen a 7.6% decline year-to-date, it previously experienced gains of over 200% in the preceding year, indicating a volatile yet potentially rewarding investment. The company's earnings and guidance could also influence the performance of space-themed ETFs, as Rocket Lab is a significant holding in both the Ark Space & Defense Innovation ETF (BATS: ARKX) and the Procure Space ETF (NASDAQ: UFO). The potential public offering of SpaceX in the near future is also a relevant factor, as it could prompt discussions about Rocket Lab's valuation relative to its industry peers and the overall impact on space-focused equities.