Rocket Lab Q3 Earnings Beat Estimates, Stock Surges in After-Hours Trading

Rocket Lab USA (RKLB) shares jumped sharply in extended trading after the aerospace company posted stronger-than-expected third-quarter results. The company reported an EPS loss of $0.03, significantly narrower than the anticipated $0.10 loss. Revenue climbed 48% year-over-year to $155.08 million, surpassing consensus estimates of $151.8 million.

Management's fourth-quarter guidance suggests continued momentum, with revenue projected between $170 million and $180 million—above the midpoint of analyst expectations. Adjusted EBITDA losses are expected to range from $23 million to $29 million, while non-GAAP gross margins could reach 43-45%.

Wall Street maintains a Moderate Buy rating on RKLB, with 9 of 13 analysts recommending the stock. The current average price target of $60.55 implies 16.7% downside potential, though revisions are likely following these results. The after-hours price action reflects investor Optimism about Rocket Lab's growth trajectory and improving financial metrics.