Overview

* Rocket Lab fiscal Q2 rev grows 36% yr/yr, misses analyst expectations

* Co expands gross margins by 650 basis points yr/yr

* Rocket Lab progresses acquisition of Geost for $275 mln

Outlook

* Rocket Lab sees Q3 revenue between $145 mln and $155 mln

* Company expects Q3 GAAP gross margins between 35% and 37%

* Rocket Lab anticipates Q3 adjusted EBITDA loss of $21 mln to $23 mln

* Company forecasts Q3 non-GAAP operating expenses between $86 mln and $91 mln

Result Drivers

* REVENUE GROWTH - Driven by strong operational performance and program execution, leading to record launches and spacecraft delivery

* GROSS MARGIN EXPANSION - Achieved through improved operational efficiencies, expanding by 650 basis points year-on-year

* M&A ACTIVITY - Progressed acquisition of Geost to enhance capabilities in defense satellite contracts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $92.72 $135.40

Product mln mln (12

Revenue Analysts

)

Q2 Net -$66.41

Income mln

Q2 $106.03

Operatin mln

g

Expenses

Q2 -$59.64

Operatin mln

g Income

Q2 -$63.48

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Rocket Lab USA Inc ( RKLB ) is $37.50, about 17.6% below its August 6 closing price of $44.10

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)