Rocket Lab Inc. has sparked a notable surge among space stocks, reporting strong earnings and new contracts. The company, which specializes in delivering satellites to orbit, posted revenue of $104.81 million for the third quarter, exceeding analysts' forecasts of $102.28 million, and narrowed its losses to 10 cents per share, just shy of the expected 11 cents.
Following the earnings announcement, investors were quick to react, pushing Rocket Lab's stock price up approximately 35%. CEO Peter Beck hailed the company's achievements, noting they’ve set a new record with 12 launches this year. Looking toward the future, Rocket Lab forecasts fourth-quarter revenues between $125 million and $135 million, buoyed by their substantial backlog of contracts valued at $1.05 billion.
Supporting this financial momentum, Rocket Lab also highlighted several key developments. They secured a multi-launch agreement with an undisclosed commercial satellite constellation operator, positioning themselves as key players with their Neutron medium-lift rocket. An $8 million contract with the U.S. Air Force is set to aid the development of Rocket Lab's reusable rocket engine, Archimedes.
All eyes are now on fellow space companies, Intuitive Machines and AST SpaceMobile, which are both preparing to release their own earnings reports shortly. Analysts anticipate Intuitive Machines will report losses of 12 cents per share on revenues of about $50.89 million, whereas AST SpaceMobile is expected to report losses of 20 cents per share with projected revenue of $24.13 million, according to estimates gathered by Benzinga Pro.
The recent rally in Rocket Lab’s stock has had ripple effects across the wider market. Both Intuitive Machines and AST SpaceMobile, taking advantage of this bullish momentum, saw their share prices climb. Intuitive Machines’ stock rose 14.7% to hover around $11.95, whereas AST SpaceMobile surged 18.3% to approximately $28.70.
The returns of space stocks could be tied to broader market sentiments influenced by changes expected after the recent elections. With Donald Trump winning the presidential race, speculation surrounds the potential support for the space sector. Given Trump’s connections to prominent figures like SpaceX’s Elon Musk, changes to the Federal Aviation Administration's commercial space office, which regulates private rocket launches, might catalyze greater investment and operational opportunities within the industry.
The optimism within the space industry, coupled with Rocket Lab’s strong quarterly performance, has provided investors with renewed confidence. Observers are now eager to see how the results from Intuitive Machines and AST SpaceMobile will impact the overall mood of space stocks, especially as these companies might also benefit from Rocket Lab's positive reception.
