Shares of Rocket Lab USA, Inc. (RKLB) experienced a significant pre-market plunge of 11.85% on Friday, following the release of its weaker-than-expected guidance for the first quarter of 2025 and amid growing concerns about intensifying competition in the space industry.
The aerospace company reported fourth-quarter 2024 revenue of $132.39 million, narrowly missing the analyst consensus estimate of $130.58 million but representing a remarkable 120.68% increase over the same period last year. While Rocket Lab met the earnings per share (EPS) estimate of -$0.10, its net loss remained substantial at -$52.3 million, highlighting ongoing financial challenges.
However, the company's guidance for Q1 2025 fell short of expectations, with projected revenue between $117 million and $123 million, below the consensus estimate of $135.67 million. This weaker outlook, coupled with Rocket Lab's disappointing Q4 performance, weighed heavily on investor sentiment, contributing to the sharp decline in the stock's pre-market trading.