Rocket Lab USA Inc RKLB reduced its Q3 FY23 financial outlook following its 41st mission launch issue last week.
On September 19, the aerospace manufacturer and small satellite launch service provider encountered a setback during its 41st mission.
The incident occurred after the rocket's successful liftoff from Launch Complex 1, completing the initial stage burn and separation as planned. However, an issue arose approximately 2 minutes and 30 seconds into the flight, leading to the mission's premature termination.
Consequently, RKLB lowered the Q3 outlook for revenue to $66 million-$68 million (vs. $73 million-$77 million earlier) against the consensus of $74.5 million.
Launch Services revenue is now projected at $22 million (vs. $30 million earlier) and Space Systems revenue at $44 million-$46 million (vs. prior range of $43 million-$47 million).
The company also cut adjusted gross margin expectations to 26%-28% from 28%-30% previously.
The outlook reflects the postponement of a scheduled Electron mission launch (earlier planned to be before the end of Q3 FY23) as the company completes an investigation into the in-flight anomaly.
RKLB does not see any material impact on incremental expenses in Q3 2023 due to the same.
Last month, the company reported Q2 EPS losses of $(0.10), missing the analyst consensus estimate of a loss of $(0.09).
The company also reported sales of $62.05 million, beating the consensus estimate of $61.79 million and representing an 11.85% increase over sales from the same period last year.
Also Read: Rocket Lab Buys Virgin Orbit Facility In $16M Deal, Plans Engine Development
Price Action: RKLB shares are trading lower by 0.94% at $4.20 premarket on the last check Wednesday.
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