Rocket Lab USA Inc. (RKLB) experienced a dramatic stock surge on Wednesday, skyrocketing almost 30% following the release of impressive third-quarter earnings that surpassed analyst forecasts. The company’s CEO, Peter Beck, attributed this surge to the company’s growing influence across various space sectors, a point he emphasized during an interview.
The space company reported third-quarter revenue of $104.81 million, a remarkable 55% year-over-year increase. Beck highlighted the company’s burgeoning $1.05 billion backlog for their smaller Electron rocket and confirmed that the larger Neutron rocket is on schedule for its initial launch next year.
He emphasized the importance of their launch capabilities, stating, “Launch is super important; it’s literally the key to space.” However, Beck went on to explain that “The Space Systems group is what enables us to build infrastructure in orbit.” This division currently boasts a backlog of over 40 spacecraft, encompassing diverse projects ranging from Mars missions to telecommunications and national security endeavors.
Addressing potential political implications, Beck expressed optimism about the space policy landscape under President-elect Donald Trump’s administration, citing its emphasis on space exploration, national defense, and efficient contracting. He concluded by saying, “When space does well, Rocket Lab does well.”
The company’s recent performance has been nothing short of remarkable, with shares climbing over 350% in the past six months. Beck attributed this growth partly to investors’ growing recognition of Rocket Lab’s position as the second-largest space company behind Elon Musk-led SpaceX. SpaceX currently holds a valuation exceeding $200 billion, while Rocket Lab’s valuation remains relatively modest, representing a sub-5% share of SpaceX’s valuation.
Looking ahead, Rocket Lab projects fourth-quarter revenue between $125 million and $135 million, anticipating continued growth through the end of the year. The company has secured new contracts, including a multi-launch agreement with a commercial satellite constellation operator and an $8 million award from the U.S. Air Force Research Laboratory.
Rocket Lab stock closed at $18.83 on Wednesday, representing a 28.44% increase for the day. In after-hours trading, the stock dipped slightly by 0.58%. Year-to-date, Rocket Lab shares have surged 254.61%, according to data from Benzinga Pro.
