I had a chance to listen to the $RKLB Q2 earnings call on Quartr (which I highly recommend for earnings reports, calls and transcripts) and here is my honest personal take. They delivered record revenue, amazing contract growth, record backlog and raised Q3 revenue guidance. Stock fell about -10% after-hours due to a narrow EPS miss and forecasted lower margins in Q3. CFO addressed both points in the call and both seem to have short-term impact that resolves beyond Q3, CFO verbatim from call: âThe sequential decline in GAAP EPS primarily reflects the inclusion of Mynaricâs results after acquisition closed, including amortization of intangible assets acquiredâ âThese forecasted GAAP and Non-GAAP gross margins are accounting for a shift in mix within our space systems business, and we expect a beneficial remixing impact on gross margins as we look beyond Q3.â Now that we got this out of the way, letâs review the lineup of amazing growth catalysts they have coming up đđđ 1. The Iridium Acquisition(expected to close in mid-2027), in Q&A Peter Beck used the word âquintessentialâ to describe the acquisition, because of the following: - They view Iridium today as the foundation that wouldâve taken 10 years to develop and that RKLB intends to supercharge adding new capabilities, scale it into untapped markets and use to pioneer new space-based services. - Iridium delivers strong profitability, with over $870M in annual revenue - an already operating constellation of 66 satellites with 2.5M subscribers, which turns RKLB into a major player in the space applications market. 2. The catalyst everyoneâs been waiting for âThe Neutron Launchâ, they gave a full update on the progress and every part of the assembly stages. They are moving into final checkouts and assembly of all hardware and target delivery of Neutron to launch pad is still going as planned with expected launch in Q4 2026. Whatâs even more exciting is how theyâre already lining up huge demand for Neutronâs early flights the recent announcement on being awarded a dedicated Neutron launch contract for Space Force is a great example of the appetite. If you want to learn more about Neutron I have a great post about the rocket here: https://link.blossomsocial.com/7uYa/gbhuqpa5 3. The Introduction of GHOST, RKLB announced the launch of a new containerized deployable launch site technology that will enable them to deploy Electron and HASTE rockets wherever they are needed around the world. They can basically now deliver the rocket, launch infrastructure, ground support and range control systems in shipping containers to your doorstep at rapid timelines. And whatâs even more beautiful is this is not a concept theyâre already deploying GHOST for their 2 new launch pads in Alaska. (Now tell me thatâs not a game changer in the space industry đ¤Ż) Now considering these catalysts, the amazing agility theyâve demonstrated in H1 shattering multiple records of responsive space missions (check the slides) and the massive surge in new contracts/customers/backlog⌠I am pretty comfortable that the future of $RKLB is bright and for now will continue to sell covered calls until it the stock takes full flight once again đđđđ Not financial advice, DYOR.
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NickMtb @nickmtb ¡ 10m
Great work and company, but it's really is a little ng term investment, not sure I have the bandwidth for this....will keep an eye out
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