Al Root

Rocket Lab stock fell after reporting first-quarter earnings. That isn't all that bad.

Thursday evening, Rocket Lab announced a first-quarter per-share loss of 12 cents from sales of $122.6 million. Wall Street was looking for an 11-cent loss and sales of $121.4 million, according to FactSet.

Sales grew 32% year over year. Sales matter more than earnings at this point. Rocket Lab is still a relatively young company, growing to profitability.

Shares were down 0.4% in premarket trading Friday at $23.02, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.1%, respectively.

A small move down in the stock isn't necessarily a bad thing. Trading in Rocket Lab stock has been wild lately. Shares have ranged from about $4 to $33 over the past 12 months. The $29 range is roughly 125% of the current stock price.

Coming into Friday trading, Rocket Lab stock was down 9% this year but up 442% over the last 12 months. Sales are growing, and investors feel much better about commercial space opportunities these days.

Looking ahead, Rocket Lab expects second-quarter sales of about $135 million. Wall Street is modeling $135.1 million. Rocket Lab reported sales of $106.3 million in the second quarter of 2024.

The company ended the quarter with some $430 million on its books. Wall Street projects cash usage of about $170 million in 2025 with positive free cash flow in 2026 as sales reach more than $900 million that year, up from a forecasted $575 million in 2025.

The company also announced a contract with the U.S. Air Force to test using rockets to rapidly move cargo around the world. It's another business win for the space start-up.

Write to Al Root at allen.root@dowjones.com

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May 09, 2025 08:19 ET (12:19 GMT)

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