Investing.com -- Rocket Lab USA (NASDAQ:RKLB) shares sank as much as 13% in U.S. premarket trading Friday after the company delayed the launch of its Neutron rocket to the second half of the year and provided a first-quarter revenue forecast that missed expectations.
The announcement led analysts to either lower their price targets or place them under review.
CEO Peter Beck extended the timeline for Neutron’s debut by several months but reaffirmed that the rocket is still set to launch in 2025.
“All major hardware and infrastructure items have arrived and been installed and our civil works at the site are practically finished,” Beck said during an earnings call on Friday after the Nasdaq-listed company released its full-year results.
The company, founded in New Zealand but listed in the United States, reported record financial performance, generating $436 million in revenue for the year.
Its fourth-quarter earnings exceeded forecasts, with revenue reaching $132.4 million—up 26% from the prior quarter and marking the strongest three-month sales period to date.
However, its guidance missed expectations, with Rocket Lab expecting revenue between $117 million and $123 million for the first quarter, below the FactSet consensus of $135.7 million
Citi analyst Jason Gursky slashed the price target on Rocket Lab stock to $33 from $35 following the latest developments, but believes that any weakness is an “enhanced buying opportunity.”
He expects Neutron to eventually hit the market and "garner its fair share."
Rocket Lab shares tanked 10% on Tuesday after a short report from Bleeker Street Research raised concerns about the company's financial stability and the feasibility of its projected launch timelines.
The company launched 16 Electron rockets last year from sites in Māhia Peninsula, New Zealand, and Wallops Island, Virginia. It has over 20 Electron and HASTE rocket launches planned for the current financial year, along with the inaugural Neutron launch.
Previously, the company had aimed to have Neutron on a U.S. launchpad by mid-2025, but its latest update revised that timeline.
Rocket Lab also shared new details about infrastructure supporting the Neutron program, including plans for an ocean-based landing platform called "Return On Investment."
The platform, similar to SpaceX’s Starship landing system, is expected to be operational by 2026.
