Rocket Lab Shares Surge on Earnings Beat and Record Margins
Rocket Lab's stock soared 6.7% in after-hours trading after reporting a narrower-than-expected Q3 loss of 3 cents per share on $155 million in revenue. Analysts had anticipated a 10-cent loss on $151.8 million in sales. The company achieved a record 37% gross margin and secured 17 Electron launch contracts, signaling robust demand for its space launch services.
Revenue grew 48% year-over-year, with Q4 guidance projecting $170 million to $180 million—above consensus estimates. Rocket Lab's strategic acquisition of Geost for $325 million bolsters its capabilities, while its cash position stands at $807.88 million, providing ample liquidity for future growth.
The stock's 100% year-to-date rally reflects investor confidence in Rocket Lab's execution and market positioning. Space infrastructure remains a high-growth sector, with private enterprises increasingly driving innovation beyond traditional government-led programs.
