Aerospace and defense company Rocket Lab (NASDAQ: RKLB) will be announcing earnings results this Monday afternoon. Here’s what to look for.
Rocket Lab beat analysts’ revenue expectations last quarter, reporting revenues of $234.1 million, up 62% year on year. It was a stunning quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Rocket Lab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Rocket Lab’s revenue to grow 66.4% year on year, improving from the 48% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Rocket Lab has a history of exceeding Wall Street’s expectations.
Looking at Rocket Lab’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 3.5%, and ATI reported revenues up 26.5%, topping estimates by 7.9%. AAR traded down 7.2% following the results while ATI’s stock price was unchanged.
Read our full analysis of AAR’s results here and ATI’s results here.
Investors in the aerospace segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Rocket Lab is down 21.5% during the same time and is heading into earnings with an average analyst price target of $102.15 (compared to the current share price of $53.64).
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