Today’s Change
Current Price
Rocket Lab (RKLB +34.22%), a launch services and space systems provider, closed Friday at $105.55, up 34.32%. The stock jumped after record Q1 revenue beat expectations and guidance pointed to another record quarter. Investors are watching how its expanding backlog converts into sustained growth and margins. Trading volume reached 76 million shares, about 247% above its three-month average of 21.9 million shares. Rocket Lab IPO’d in 2020 and has grown 983% since going public.
How the markets moved today
The S&P 500 added 0.82% to finish Friday at 7,397, while the Nasdaq Composite climbed 1.71% to close at 26,247. In aerospace & defense, established rivals Lockheed Martin closed at $506.5 (-1.15%) and Northrop Grumman ended at $549.65 (-0.47%), lagging Rocket Lab’s outsize move.
What this means for investors
Rocket Lab’s 64% revenue growth smashed Wall Street’s expectations, and its narrowing EPS loss of $0.07 also snuck past analysts’ hopes. Looking ahead to Q2, management expects sales to grow by 16% sequentially, after growing 12% quarter over quarter in Q1. Perhaps the most exciting figure for investors was RKLB’s backlog growth of 108%, with 42% from its launch operations and 58% from space systems.
The company also landed a $30 million deal with upstart defense tech Anduril Industries, which forms a partnership between two of the world’s most promising young defense companies. Rocket Lab also acquired space robotics specialist Motive Space Systems, potentially enabling it to play a larger role in exploration missions. Overall, shareholders should be pleased with this impressive report.
Josh Kohn-Lindquist has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
