Rocket Lab Unveils 'Flatellite:' Low-Cost, Mass-Producible Satellite To Target Large Constellations Amid Weak Q1 Guidance

Rocket Lab USA Inc. RKLB announced “Flatellite,” during its earnings call amid a weak guidance and fourth quarter earnings report that met analyst expectations.

What Happened: During its fourth-quarter earnings call, Rocket Lab’s founder and CEO, Peter Beck, introduced Flatellite, in line with its vertical integration strategy.

Flatellite is a low-cost, mass-producible satellite developed by the company for large constellations. A satellite constellation is a group of satellites working together in orbit to perform a specific task, such as communication or Earth observation.

“Flatellite is a scalable, resilient, high-power satellite that can enable capabilities such as secure low-latency, high-speed connectivity and remote sensing for national security, defense and commercial markets,” said Beck.

He further explained how the company can maximize the number of Flatellites launched per mission, ensuring its integration with Neutron, a medium-lift, partially reusable launch vehicle. Neutron is currently slated to make its first launch in the second half of 2025.

Rocket Lab also secured a multi-launch deal with the Institute for Q-shu Pioneers of Space and revealed details about its “Return On Investment” ocean platform for its reusable Neutron rocket.

Why It Matters: Despite the introduction of its new low-cost satellite, Rocket Lab reported a weaker than expected first quarter guidance, causing the shares to plunge in after-hours.

While it exceeded revenue expectations at $132.39 million against an estimated $130.58 million. It reported a loss of 10 cents per share, aligning with analyst predictions. Cash reserves grew to $271 million compared to the previous year’s $162.5 million.

The management forecasts first quarter revenue between $117 million and $123 million, falling short of the $135.67 million estimate. They also project an adjusted EBITDA loss of $33 million to $35 million for the quarter.

Price Action: Rocket Lab fell 6.68% on Thursday and declined 12.64% in after-hours, this outpaced the 2.66% fall in the Fidelity NASDAQ Composite Index ETF ONEQ, which tracks the Nasdaq Composite index.

The stock remains 20.55% lower on a year-to-date basis, however, it’s up 332.03% over a year.

Benzinga tracks 17 analysts with an average price target of $16.43 for the stock, reflecting a “hold” rating. Estimates range widely from $3 to $35. Recent ratings from Keybanc, Citigroup, and Goldman Sachs average $26.83, suggesting a potential 54.90% upside.