Rocket Lab (RKLB) is scheduled to report its first-quarter 2025 earnings on May 8, after the market closes. Analysts expect the aerospace company to post a loss of -$0.11 per share, which compares to a loss of -$0.06 in the same quarter last year. At the same time, management previously guided for revenue of between $117 million and $123 million, which would equate to a 29% increase from last year.
In addition, the company reported a strong order backlog of over $1 billion in its previous quarter, and investors will be keeping an eye to see if that backlog continues to grow. Interestingly, according to Main Street Data, Space Systems makes up the majority of the backlog, with Launch Services making up the rest.
Another thing that investors will likely be focusing on is Rocket Lab’s “Flatellite,” which is a mass-producible satellite designed for large-scale constellations. The Flatellite is able to deliver high-power and secure connectivity solutions for government and commercial customers. It is also worth noting that the design allows satellites to be stacked efficiently. This increases the number that can be launched at once and will eventually be paired with Rocket Lab’s upcoming Neutron rocket.
Rocket Lab Still Faces Challenges
However, despite these achievements, the company still faces some challenges, such as the delayed launch of its larger Neutron rocket to the second half of 2025. Nevertheless, analysts are optimistic about Rocket Lab’s long-term potential.
Indeed, five-star Stifel analyst Erik Rasmussen reaffirmed his Buy rating and a $27 price target by noting that delays to the Neutron rocket launch are understandable but don’t change the company’s growth story. KeyBanc Capital Markets, led by 4.5-star analyst Michael Leshock, also kept an Overweight rating and set a $28 target. He said that Rocket Lab remains on track to become a leader in launch services and satellite production.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect an 11.4% price move in either direction. This estimate is derived from the $22 strike price, with call options priced at $1.25 and put options at $1.28.
Is RKLB Stock a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on RKLB stock based on nine Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RKLB price target of $27.91 per share implies 21.4% upside potential.
