Rocket Lab (NASDAQ:RKLB), one of SpaceX’s (NASDAQ:SPCX) closest publicly traded competitors, has staged a sharp rebound in recent days, climbing from a low of around $56 to $83.
The rally has been fueled by a series of major contract wins, including a $266 million U.S. Space Force launch contract and a $397 million award to build and launch satellites designed to track airborne threats.
These deals have strengthened Rocket Lab’s backlog and reinforced its position in the growing defense and space-infrastructure market. Focus now shifts to the upcoming earnings report, which will be the first one since it announced its Iridium (NASDAQ:IRDM) acquisition.
Rocket Lab to Publish Earnings After Major Contract Wins
RKLB stock has bounced back after the company made some major contract wins. It recently won a $397 million contract to build and launch flatellites for the US Space Force on the upcoming Neutron rocket. The government has an option to add more Flatellites in this order.
Rocket Lab also announced another contract win from the Institute for Q-shu Pioneers of Space (iQPS) for three new dedicated launches on Electron. This is the thied multi-launch booking on Electron by iQPS, bringing the total launches to 18.
The company also recently won a $266 million contract with the US Space Force for its suborbital launches.
These events mean that its backlog continued growing, which will be its highlight when it publishes its earnings next week. Its last results showed that its revenue jumped by 63.5% in the second quarter to $200.3 million, with its backlog hitting a record $2.2 billion.
Analysts expect the results to show that its revenue jumped by 60% in the second quarter to $230 million. Its guidance for the third quarter is expected to be $232 million, a 52% annual increase. Chances are that the company’s revenue and earnings will be better than expected.
These will be the first earnings since the company announced its Iridium buyout, which will help it expand in satellite communications.
RKLB Stock Technical Analysis
Rocket Lab stock chart | Source: TradingView
The daily chart shows that Rocket Lab shares have retreated from a high of $150 to a low of $57.4 on July 29. It has now rebounded, moving above the 25-day Exponential Moving Average (EMA), a sign that bulls are slowly prevailing.
The Average Directional Index (ADX) has remained above 20, a sign that the trend’s strength is continuing. Therefore, the most likely scenario is where the stock continues rising, potentially to $100 after its earnings. The risk, however, is that its implied volatility has jumped to 110%, higher than the historical average of 96%.
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