Rocket Lab USA(US:RKLB) Benzinga·2025-05-09 19:20Core Viewpoint - Rocket Lab USA, Inc. reported better-than-expected financial results for the first quarter, with revenues of $122.57 million, surpassing the consensus estimate of $121.38 million, and a loss of 12 cents per share, which was better than the anticipated loss of 13 cents per share [1][2]. Financial Performance - The company experienced a sequential narrowing of quarterly losses by $6.8 million, which was attributed to two main factors [2]. - Revenue per launch decreased to $7.1 million from $8.2 million in the first quarter of 2024, leading to reduced launch services income [3]. - Research and development expenses increased as the company scaled manufacturing and production capacity in preparation for the Neutron rocket launch [3]. Pricing Strategy - The company is intentionally offering volume-based discounts to secure long-term launch contracts, resulting in a lower average selling price for the quarter [4]. - The backlog for the second half of 2025 indicates an expected increase in launch frequency and average selling prices, driven by higher-value HASTE and mission assurance launches [4]. Future Outlook - A new agreement with the U.S. Air Force Research Laboratory for a rocket cargo mission reflects growing confidence in Neutron's capabilities, which is expected to enhance its commercial traction [5]. - The fiscal 2025 non-GAAP EPS estimate was raised to ($0.20) from ($0.24), above the consensus expectation of ($0.25), with anticipated revenue growth of 33% for the year [5]. - For fiscal 2026, the non-GAAP EPS estimate was maintained at $0.02, slightly ahead of the Street's forecast of $0.01, driven by expected revenue growth of 50% [6]. Market Reaction - Following the earnings report, Rocket Lab shares traded lower by 9.9% to $20.80 [6].