Rocket Lab launched three rockets in the second quarter of 2023.
Courtesy Rocket Lab
SpaceX is way larger than
Rocket Lab USA
which can be described, frankly, as a mini-SpaceX. SpaceX’s feats and failures come more frequently and with more fanfare than Rocket Lab. Still, the smaller company is doing some impressive things, too, starting with its recent earnings.
Rocket Lab (ticker: RKLB) delivered better-than-expected second-quarter earnings. shares are rising in early trading Wednesday.
Tuesday evening, Rocket Lab reported a loss of 6 cents per share on sales of $62 million. Wall Street was looking for a loss of 7 cents per share on sales of $61 million. A year ago, the company lost 4 cents a share on sales of $55.5 million.
“The second quarter saw strong performance across Rocket Lab’s launch and space systems businesses with three successful Electron launches, more than 17 spacecraft featuring Rocket Lab satellite components deployed to orbit, and multiple new launch contracts signed with new and returning customers,” said CEO Peter Beck in a news release. “We also achieved some major development milestones for Neutron in the second quarter, including completion of the second stage qualification tank.”
The Neutron rocket, due to fly in 2024, is larger than the Electron rocket.
Three Electron launches are impressive. Rocket Lab is the only private space company generating significant sales and recovering part of its rockets besides, of course, SpaceX. SpaceX launched more than 20 times in the second quarter.
Rocket Lab launched nine rockets in 2022, and is on pace for 12 to 15 for 2023. SpaceX launched 61 rockets in 2022, and looks set for 80 this year. Rocket Lab is far smaller, but its growth is on track to keep up with or exceed growth from
Elon Musk
‘s space company.
Rocket Lab stock was up 10% in premarket trading, to $7.35, but gains evaporated with the market. By midday, shares were down 4.4%, to $6.37. The
S&P 500
and
Nasdaq Composite
were down 0.7% and 0.6%, respectively.
Some profit-taking could be to blame. The stock is up 77% this year and 22% in the past three months. The shares have climbed on consistent business execution from the company as well as a rally for early-stage companies as investors look for the end of the Fed’s interest-rate hike cycle.
For the third quarter, Rocket Lab expects sales of roughly $75 million. Wall Street was looking for sales of about $80 million, according to FactSet. The company’s top-line guidance is light, but expected losses are in line with estimates. What’s more, $75 million in sales is up about 20% year over year, up from about 12% growth in the second quarter.
Rocket Lab ended the quarter with about $245 million in cash on the books. It used about $55 million in the first half of 2023. Wall Street projects the company will use about $50 million in the second half of the year.
Write to Al Root at [email protected]
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