Rocket Lab Corporation (NASDAQ:RKLB) shares are trading higher Friday in a recovery after losses Thursday, with earnings due Monday. Space and defense peers such as AST SpaceMobile Inc. (NASDAQ:ASTS), Redwire Corporation (NYSE:RDW) and Virgin Galactic Holdings Inc. (NYSE:SPCE) are also trading higher.
- Rocket Lab stock is showing exceptional strength. Why are RKLB shares rallying?
Aerospace, Defense Stocks Fell Thursday as Midterm Results Raised Spending Questions
Shares of aerospace and defense companies traded lower Thursday as Democrats’ midterm victories raised concerns about potential constraints on military spending. A Democrat-controlled Congress could challenge President Donald Trump’s proposed $1.5 trillion defense budget, creating uncertainty around future Pentagon funding and defense contracts.
The broader market also tanked Thursday, with the Dow Jones Industrial Average shedding more than 1,800 points, according to CBS News.
Rocket Lab to Report Third-Quarter Results Monday
Rocket Lab is scheduled to report third-quarter earnings Monday, Nov. 9, after the market closes, with a call at 5 p.m. ET. Analysts estimate a loss of 7 cents per share along with revenue of $255.71 million. For the prior quarter, Rocket Lab reported a loss of 8 cents per share, versus the consensus estimate of a loss of 7 cents.
The company also posted record revenue of $234.07 million, up 62% from a year earlier, beating the consensus estimate of $231.35 million. Rocket Lab guided to third-quarter revenue of $250 million to $265 million.
What to Watch: Neutron Timeline, Backlog and Cash Burn
Investors will be closely tracking the Neutron rocket, whose first launch has slipped to 2027, after defects were found in a first-stage tank component, according to Cantor Fitzgerald, which expects the debut in the second quarter of 2027. Backlog will also be in focus, after Rocket Lab ended the second quarter with a record $2.36 billion, up 137%, and said it had signed more than $1 billion of new contracts in the third quarter before the report.
Cash burn will draw attention too, with a GAAP operating loss of $57.5 million in the second quarter, as Neutron spending continues. Space Systems made up about 81% of second-quarter revenue and doesn’t depend on Neutron, so its growth will be watched.
Rocket Lab Shares Surge
RKLB Price Action: At the time of publication, Rocket Lab shares are trading 5.04% higher at $48.31, according to data from Benzinga Pro.
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