Rocket Lab USA, Inc. (RKLB) experienced a 5.04% pre-market plunge on Tuesday, following the release of its full-year 2024 financial results. The aerospace company reported a 78% year-over-year increase in revenue to $436.2 million, driven by strong performance in its Space Systems segment. However, net loss widened by 4.2% to $190.2 million, or $0.38 per share, slightly worse than analyst expectations.
While revenue growth and meeting earnings estimates were positive signs, investors appeared concerned about Rocket Lab's continued high costs and widening losses. The company's cost of sales amounted to 73% of total revenue, with research & development accounting for 57% of total expenses. This high expense burden weighed on profitability, contributing to the stock's decline.
Additionally, the company's shares had already fallen 17% over the past week, potentially due to broader market conditions or other factors. Despite the revenue growth and meeting expectations, the ongoing net losses and high costs likely raised concerns among investors, leading to the pre-market sell-off on Tuesday.
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