Rocket Lab Stock Falls After Q1 Outlook Falls Below Expectations, Retail Optimism Undeterred

Rocket Lab USA (RKLB) stock fell 12.6% in extended trading on Thursday after the aerospace firm forecasted first-quarter revenue below Wall Street estimates.

The satellite launch services provider projected first-quarter revenue between $117 million and $123 million, while analysts, on average, expected the company to post $135.7 million in revenue.

The company reported a fourth-quarter net loss of $52.35 million, or $0.10 per share for the three months ended Dec. 31, compared to $50.5 million, or $0.10 per share, last year.

Its quarterly revenue more than doubled to $132.4 million and topped Wall Street’s estimated $130.6 million.

Rocket Lab said revenue rose 26% sequentially, driven by an increase in launches from three to five and growth in its Space Systems business, primarily driven by higher revenue from its contract with the Space Development Agency.

At the end of the fourth quarter, the company's backlog was $1.07 billion, helped by strong bookings in government and commercial contracts.

The company expects the first launch of its reusable medium-lift Neutron rocket in the second half of 2025. It also unveiled a new ocean landing platform for Neutron missions returning to Earth, called Return On Investment.

It also signed a second launch contract with the Japan-based Earth imaging company Institute for Q-shu Pioneers of Space for its Electron small lift launch vehicle. The company said the new contract boosted the number of Electron launches dedicated to iQPS to eight.

The Long Beach, California-based company introduced Flatellite, a new low-cost satellite catered for mass manufacture, to serve national security, defense, and commercial markets.

Retail sentiment on Stocktwits moved higher into ‘extremely bullish’ (88/100) territory than a day ago, while retail chatter rose to ‘extremely high.’

One retail user attributed the decline of the stock to the broader market while another user hoped that the selloff would end on Friday.

Over the past year, Rocket Lab stock has more than quadrupled.

Also See: Rocket Companies Stock Rises After Q4 Profit Beat, Retail Sentiment Hits 1-Year High

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