Rocket Lab Stock Price Analysis Today A Look at Record Sales and Future Hopes

Rocket Lab is a company that makes rockets for space. In Q4 of 2024, the company made more money than many people thought. Their sales grew by 121% compared to last year. They earned $132.4 million in that time. However, they think that next quarter they will make about $120 million. This is 13.4% lower than what experts expected. The company lost $0.10 per share, which was what analysts predicted.

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Rocket Lab Q4 2024 Highlights

• Revenue: $132.4 million compared to the expected $130.5 million (121% growth, a 1.4% beat)
• EPS (GAAP): -$0.10 per share (matches expectations)
• Adjusted EBITDA: -$23.19 million compared to the expected -$29.06 million (a beat of 20.2% with a -17.5% margin)
• Revenue Guidance for Q1 2025: $120 million (the midpoint), which is lower than the expected $138.6 million
• EBITDA Guidance for Q1 2025: -$34 million (the midpoint), lower than the expected -$27.72 million
• Operating Margin: -38.9%, which is better than -79.8% from the same quarter last year
• Free Cash Flow: -$70.44 million compared to -$52.63 million last year
• Market Capitalization: $10.62 billion

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What the CEO Said

Rocket Lab’s founder and CEO, Sir Peter Beck, said:

“2024 was a record-setting year for Rocket Lab. We made our highest annual revenue ever of $436.2 million, and in Q4 we reached $132.4 million. That is a 382% increase compared to Q4 2021, our first full quarter as a public company. We launched 16 rockets with our Electron in 2024. This is a 60% increase compared to 2023. We also secured more than $450 million in new contracts. We ended the year with big progress on our Neutron program, and we plan to have a debut launch in the second half of 2025. Our strong work in launch and space systems is important as we move toward our own satellite service. In Q1 2025, we introduced our new mass-made satellite platform called Flatellite. This new satellite will be used for national security, defense, and commercial services. It also shows a bold step toward running our own future satellite network.”

Company Overview

Rocket Lab is the first private company from the Southern Hemisphere to reach space. They build rockets that help launch small satellites. Aerospace companies like Rocket Lab need special technical skills and invest a lot of money to build very complex products. Innovation is very important in this industry. Many companies now work to reduce pollution and use more machines. But the need for aerospace products can go up and down with the economy and world events. This can be hard for companies with high fixed costs.

Sales Growth

Looking at how much a company’s sales grow over many years tells us a lot about its quality. Rocket Lab has grown its revenue by 87.7% every year for the past four years. This is very good. It is much better than many other industrial companies. It shows that many customers like what Rocket Lab makes.

In this quarter, Rocket Lab’s revenue grew by 121% compared to last year. Their $132.4 million in revenue beat Wall Street’s estimates by 1.4%. The company now expects a 29.4% year-on-year increase in sales for the next quarter. Over the next 12 months, experts think revenue will grow by 38.9%. Even though this is a bit slower than before, it still shows that many people believe in their products and services.

The Impact of Generative AI

These days, many people talk about generative AI. This technology is changing how big companies do business. While companies like Nvidia and AMD are well known, Rocket Lab is a lesser-known company that also benefits from the rise of AI. For more details on this growth story, you can click here to read our free report.

Operating Margin

Rocket Lab has high expenses. This means that on average, its operating margin is -66.7% over the last five years. When a company is not making a profit, it can be risky if the economy changes. However, Rocket Lab’s operating margin has improved over time because its sales have grown. In Q4, the company had an operating margin of -38.9%. Even though this is still a loss, it is a sign of progress. Still, Rocket Lab must work harder to become profitable in the long run.

Earnings Per Share

Earnings per share (EPS) shows if a company is getting closer to making a profit. Although Rocket Lab still has a negative full-year EPS, it has reduced its losses. Its EPS improved by 34.1% every year over the past four years. The next few quarters are very important. They will show if the company can start earning a profit. For the past two years, Rocket Lab’s EPS declined by 14.1% per year. This is a change from the good four-year trend. In Q4, the EPS was -$0.10, the same as last year. This did not meet some experts’ expectations. However, many believe that over the next 12 months, Rocket Lab’s EPS may reach a break-even point at around -$0.38.

Key Takeaways from Q4

• Rocket Lab did much better than expected with its EBITDA.
• Its revenue slightly beat Wall Street’s predictions.
• However, the revenue and EBITDA guidance for the next quarter were lower than expected.
• Right after these results were announced, the stock price fell 9.7% to $17.90.

Should You Invest?

When you decide to invest in Rocket Lab, think about the company’s value, the quality of its business, and what happened in the latest quarter. For more details, read our full research report—it is free.