However, that optimism eventually gave way to caution. Since reaching its late-May high, Rocket Lab shares have fallen 57%, leaving the stock lower by 7% for the year. Investors locked in gains after the massive rally, while richly valued growth stocks fell out of favor during a broader market pullback. Concerns also surfaced over the company’s proposed acquisition of Iridium Communications and the additional capital required to bring Neutron into regular service.
The next opportunity to restore investor confidence comes on August 10, when Rocket Lab reports second-quarter results. Shareholders will be hoping for a repeat of the company’s first-quarter earnings release, when the stock soared 34% after beating Wall Street’s expectations.
Management guided for second-quarter revenue between $225 million and $240 million, implying another sequential record. At the same time, Rocket Lab expects adjusted EBITDA to remain negative, projecting a loss between $20 million and $26 million as it continues investing heavily in Neutron and other long-term growth initiatives.
Ahead of the report, Citizens analyst Trevor Walsh, who ranks among the top 2% of Wall Street analysts, argues that Rocket Lab remains “one of the best-positioned names” in his coverage.
