A single-day surge of 28% for any equity signals a major market-moving event. For Rocket Lab USA, this dramatic ascent was propelled by a powerful trifecta: quarterly results that handily surpassed expectations, a record-breaking order backlog, and a landmark first customer booking for its forthcoming Neutron rocket. As SpaceX’s Elon Musk sets his sights on interplanetary travel, Peter Beck’s enterprise is emerging as a formidable terrestrial competitor. The critical question for investors is whether this ambitious firm can truly challenge the industry’s dominant titan.
Neutron Secures Its First Paying Customer
The most significant announcement arrived as a major business development: a confidential commercial satellite operator has reserved two launches on the still-in-development Neutron rocket, scheduled for mid-2026. The contract price of approximately $50 million per mission aligns perfectly with the company’s target range. This deal marks a serious escalation in Rocket Lab’s competition with SpaceX’s Falcon 9, providing tangible validation for its next-generation vehicle.
Scheduled to commence operations by mid-2025, the Neutron rocket is designed to unlock access to highly lucrative market segments. These include deploying large satellite constellations, executing military missions under the US Space Force’s National Security Space Launch program—a framework with a $5.6 billion value over five years—and conducting commercial heavy-lift flights. The production facility in Virginia is already operational, and technical development is reportedly proceeding according to schedule.
The news bolstered analyst confidence. Deutsche Bank’s Edison Yu stated, “With the ongoing operational and technical progress on Neutron, our confidence is growing that the program remains on track, both in terms of its timeline and its budget.”
Impressive Quarterly Financial Performance
The third-quarter 2024 earnings report delivered precisely what Wall Street was hoping for: explosive revenue growth. Rocket Lab posted revenues of $104.8 million, a figure that not only represents a 55% year-over-year increase but also exceeded analyst estimates of $102 million. The primary growth engine was the Space Systems division, which generated $83.9 million, nearly double its revenue from the same period last year.
Should investors sell immediately? Or is it worth buying Rocket Lab USA?
The company’s loss per share came in at $0.10, a narrower deficit than the market had anticipated. Perhaps more impressive was the swelling order backlog, which ballooned to $1.05 billion—an 80% increase compared to the previous year. In the third quarter alone, Rocket Lab secured new Electron launch contracts valued at $55 million. The average price per mission for the Electron rocket also climbed, reaching $8.4 million.
A Diversified Space Company Emerges
Rocket Lab’s business model now extends far beyond simple launch services. The workhorse Electron rocket, with twelve launches in 2024 already marking a record year, has become the third most frequently launched orbital rocket globally and the second most active in the United States. Concurrently, the company is expanding its capabilities to constructing entire spacecraft. It has already delivered two spacecraft for NASA’s ESCAPADE mission to Mars and is conducting additional studies for the Mars Sample Return campaign.
Looking ahead, CEO Peter Beck has provided fourth-quarter 2024 revenue guidance of $125 to $135 million. Achieving this target would elevate the company’s annual revenue to approximately $430 million, further cementing its compelling growth narrative. The powerful share price jump to $18.83 on November 13th propelled the stock within striking distance of its all-time high of $20.72, recorded back in September 2021.
The ultimate question for the market remains: Is Rocket Lab destined to remain a nimble challenger, or is this the genesis of the space industry’s next major powerhouse?
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