Rocket Lab (RKLB) Reports Earnings Tomorrow: What To Expect

Aerospace and defense company Rocket Lab (NASDAQ:RKLB) will be announcing earnings results this Monday after market close. Here’s what to look for.

Rocket Lab beat analysts’ revenue expectations by 7% last quarter, reporting revenues of $144.5 million, up 36% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Rocket Lab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Rocket Lab’s revenue to grow 45% year on year to $151.9 million, slowing from the 54.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rocket Lab has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Rocket Lab’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Howmet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.3%, and Astronics reported revenues up 3.8%, in line with consensus estimates. Howmet traded up 1.1% following the results while Astronics was down 1.1%.

Read our full analysis of Howmet’s results here and Astronics’s results here.

There has been positive sentiment among investors in the aerospace segment, with share prices up 2.2% on average over the last month. Rocket Lab is down 18.3% during the same time and is heading into earnings with an average analyst price target of $59.50 (compared to the current share price of $52.48).

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