Rocket Lab USA (RKLB, Financial) shares skyrocketed by 40% after the company posted strong third-quarter sales, backed by its Electron rocket program. The space firm reported total revenue of $104.8 million, up from $67.7 million in the same quarter last year, and topped Wall Street's estimate of $102.7 million. This growth was fueled by a record-breaking 12 Electron launches and $55 million in new contracts, pushing Rocket Lab's backlog to $1.05 billion, underscoring sustained market demand for its launch services and satellite technologies.

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However, Rocket Lab also recorded a net loss of $51.9 million, or $0.10 per share, a slight improvement over analysts' projection of a $0.11 per share loss. The company attributed the losses to increased research and development and operational costs related to the ongoing development of its Neutron rocket and expanded satellite manufacturing. Cash reserves remained robust, with $292.5 million in cash and equivalents at quarter-end, ensuring that Rocket Lab can proceed with its ambitious growth initiatives.

Rocket Lab forecasts fourth-quarter revenue between $125 million and $135 million, surpassing the consensus estimate of $121.9 million. Expected revenue growth is attributed to planned Electron missions and additional satellite contracts, including partnerships with NASA for upcoming Moon and Mars missions, positioning Rocket Lab for continued momentum in the space sector.