Rocket Lab’s Q2 report looked solid.
Some concerns about the Neutron’s first launch briefly drove its stock lower.
Rocket Lab (NASDAQ: RKLB), a developer of reusable orbital rockets and other spacecraft, posted its second-quarter earnings report on Aug. 10. Its revenue rose 62% year over year to $234 million, beating analysts' estimates by $3 million. It narrowed its net loss by five cents to $0.08 per share, matching the consensus forecast.
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Rocket Lab's headline numbers looked solid, but its stock opened 5% lower the following day amid some concerns regarding its new higher-capacity rocket, the Neutron. In the past, the company said it could launch its first Neutron rocket by the end of 2026. But this time, CEO Peter Beck merely said it was targeting the Neutron's delivery to the launchpad by the fourth quarter, and that it was still "balancing the timing of our first launch" against its subsequent launches. Some investors likely interpreted that cautious statement as a warning that the first Neutron launch could slip to the beginning of 2027.
Rocket Lab's stock stabilized and rose again over the following days, so it doesn't seem like investors are too worried about a major delay. For now, it still has plenty of irons in the fire. It's already launched its smaller Electron rocket 92 times, and its planned takeover of Iridium (NASDAQ: IRDM) will significantly increase its exposure to the satellite services market. Its stock isn't cheap at 50 times this year's sales, but analysts still expect it to more than double its annual revenue from 2025 to 2028.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.