Shares of Rocket Lab USA (RKLB) slipped in after-hours trading after the aerospace company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at -$0.13, which missed analysts’ consensus estimate of -$0.10 per share. However, sales increased by 36% year-over-year, with revenue hitting $144.5 million. This beat analysts’ expectations of $135.4 million.
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In addition, the company reported a strong order backlog of $1 billion, with Space Systems making up 59% and its Launch Services making up the remaining 41%. This is more balanced than the previous quarter, when Space Systems made up roughly 60%, as per the image below.
2025 Outlook
Looking forward, management has provided the following guidance for Q3 2025:
- Revenue of between $145 million and $155 million versus analysts’ estimates of $150.4 million
- Adjusted EBITDA loss of between $21 million and $23 million
- Non-GAAP gross margin between 39% and 41%
As we can see, the company’s revenue outlook is essentially in line at the midpoint, which likely led to the after-hours move in the stock price.
Is RKLB Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on nine Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RKLB price target of $40.73 per share implies 7.9% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
