Rocket Lab shares fell more than 6% in after-hours trading on November 9 after the space company reported a wider-than-expected quarterly loss. The decline came despite record revenue, a growing order backlog and rising demand for its upcoming Neutron rocket. (Sources: Asianet Newsable, TradingKey)
Rocket Lab reported third-quarter revenue of $267.83 million, up 73% from a year earlier and above analysts' estimates of around $257 million. It marked the company's sixth consecutive quarter of record revenue, reflecting growth across its launch and space systems businesses.
The company reported an adjusted loss of 12 cents per share, wider than analysts' expectations of a 7-cent loss. Higher research and development and operating expenses weighed on profitability, raising concerns among investors about the cost of scaling its business.
Rocket Lab secured more than $515 million in Neutron launch contracts during the quarter, covering eight missions. The company raised the rocket's base launch price to $70 million from $55 million for several missions, reflecting strong demand and tightening launch capacity.
Neutron's launch backlog has reached 16 missions even before its maiden flight. With available launch slots extending into the 2030s, Rocket Lab is seeing strong demand from satellite constellation operators and government customers.