Rklb Investigation: Block & Leviton Investigating Rocket Lab Usa For Potential Securities Fraud, Investors Should Contact The Firm To Potentially Recover Losses

BOSTON, MA / ACCESS Newswire / February 26, 2025 / Block & Leviton is investigating Rocket Lab USA, Inc. for potential securities law violations. Investors who have lost money in their Rocket Lab USA, Inc. investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/rklb.

What is this all about?

Shares of Rocket Lab fell over 10% in intraday trading on February 25, following the release of a Bleecker Street Research report that alleges the company misled investors about the timeline for its Neutron rocket, which Rocket Lab has repeatedly claimed will launch by mid-2025. The report cites industry experts suggesting that the launch could be delayed by one to two years due to setbacks in engine development, production, and launch site readiness. It also raises concerns about Rocket Lab's financial position and the need for additional capital. Block & Leviton is investigating.

Who is eligible?

Anyone who purchased Rocket Lab USA, Inc. common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.

What is Block & Leviton doing?

Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.

What should you do next?

If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at shareholders@blockleviton.com, or by phone at (888) 256-2510.

Whistleblower?

If you have non-public information about Rocket Lab USA, Inc., you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at shareholders@blockleviton.com or by phone at (888) 256-2510.

Why should you contact Block & Leviton?

Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website www.blockleviton.com, call (888) 256-2510 or email shareholders@blockleviton.com with any questions.

This notice may constitute attorney advertising.

CONTACT:

BLOCK & LEVITON LLP

260 Franklin St., Suite 1860

Boston, MA 02110

Phone: (888) 256-2510

Email: shareholders@blockleviton.com

SOURCE: Block & Leviton LLP

View the original press release on ACCESS Newswire

NEW YORK CITY, NY / ACCESS Newswire / February 26, 2025 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Rocket Lab USA, Inc. ("Rocket Lab" or "the Company") . Investors who purchased Rocket Lab securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/RKLB.

Investigation Details

On February 25, 2025, Bleeker Street Research ("Bleeker Street") published a short report alleging that Rocket Lab "has materially misled investors about the likelihood that its Neutron rocket will launch in mid-2025, a timeline the company has repeatedly claimed in media interviews and on earnings calls[,]" claiming that "rocket experts we spoke to put the timeline of a rocket launch from mid-2026 to mid-2027, a one to two year delay." Bleeker Street also asserted that "Neutron's sole announced launch contract looks to be with an unproven, questionably capitalized startup called E-Space, which two experts called a subpar customer that may run out of money or pull the launch entirely" and that Rocket Lab "appears to be willing to sell Neutron launch slots well below its stated launch price of $50-$55 million, despite management's claim that its recently announced contract was ‘in line' with that price." Following publication of the Bleeker Street report, Rocket Lab's stock price fell $2.21 per share, or 9.83%, to close at $20.28 per share on February 25, 2025.

What's Next?

If you are aware of any facts relating to this investigation or purchased Rocket Lab securities, you can assist this investigation by visiting the firm's site: bgandg.com/RKLB. You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC:

There is No Cost to You

We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.

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SOURCE: Bronstein, Gewirtz & Grossman, LLC

View the original press release on ACCESS Newswire

Rocket Lab USA, Inc. RKLB is slated to report fourth-quarter 2024 results on Feb. 27, 2025, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for revenues is pegged at $129.9 million, suggesting an improvement of 116.6% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at a loss of 10 cents per share, implying no change from the loss incurred in the prior-year quarter. The bottom-line estimate has moved down in the past 60 days.

Rocket Lab has a decent earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 9.04%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for RKLB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Rocket Lab has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors to Consider

The strong revenue performance across both the company’s business segments is likely to add an impetus to its overall fourth-quarter results amid the effects of higher operating expenses.

RKLB’s Launch Services Unit to Post Solid Sales

Higher revenue per launch, backed by solid volume growth, as well as solid revenue contributions from strong bookings witnessed in the prior quarters must have bolstered the top line of the Launch Services business segment.

The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $37.5 million, indicating a massive 343.3% increase from the top line reported a year ago.

RKLB’s Space Systems Unit Also Holds Potential

Solid growth in spacecraft manufacturing, along with a strong contribution from RKLB’s space solar business, is likely to have boosted revenue growth for its Space Systems business segment.

The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $92.37 million, indicating 79.3.3% growth from the year-ago quarter’s reported figure.

What Impacted RKLB’s Bottom Line?

Such a solid top-line projection is likely to have aided RKLB’s fourth-quarter bottom-line growth. However, higher operating expenses due to increased staff costs and related infrastructure IT expenses, as a result of hiring and prototype spending to expand the company’s spacecraft and spacecraft components product portfolio, might have put downward pressure on its operating margin. This, in turn, might have adversely impacted its overall earnings.

Price Performance & Valuation

RKLB’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 330.5% in the timeframe, outperforming the Zacks aerospace-defense industry’s decline of 5.9%. It has also outpaced the broader Zacks Aerospace sector’s return of 1.4% as well as the S&P 500’s gain of 18.8%.

A similar stellar performance has been delivered by other industry players, such as Embraer ERJ, Archer Aviation ACHR and RTX Corp. RTX, whose shares have surged 122.4%, 61.9% and 40.8%, respectively, over the past year.

In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 16.31X, a premium to its industry’s average of 1.58X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its industry’s P/S ratio.

Investment Thesis

According to an April 2024 report by the World Economic Forum, the global space economy is projected to reach $1.8 trillion by 2035 as satellite and rocket-enabled technologies become more widespread. Such growth prospects offer solid opportunities for Rocket Lab to enhance its footprint in the global space economy, with its Electron rocket ranking as the second most frequently launched orbital rocket among U.S. companies.

However, RKLB faces certain challenges at present, which one should consider before investing in the stock. One such hazard is the high operating expenses that the company incurs due to its consistent investments in developing new products and enhancing the existing ones.

Such high operating expenses largely offset the benefits of strong revenue growth, thereby causing RKLB to report quarterly losses. To this end, Rocket Lab expects its operating expenses to increase in the future. If RKLB’s revenue growth does not increase enough to offset the anticipated rise in operating expenses, it may not be able to achieve profitability.

Should You Buy RKLB Before Feb. 27?

To conclude, investors interested in RKLB should refrain from adding this stock to their portfolio before Thursday, considering its premium valuation as well as higher operating expenses. The company might disappoint with its fourth-quarter results, considering the downward revision in its quarterly earnings estimates as well as an unfavorable Zacks rank.

Moreover, RKLB currently has a VGM Score of F, which is another indicator of the stock’s poor performance.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Tech stocks were retreating Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) falling 1.8%.

The Philadelphia Semiconductor index dropped 1.4%.

In corporate news, Apple shareholders rejected outside proposals seeking to end the iPhone maker's diversity, equity and inclusion efforts, media reports said, citing the company's annual meeting held virtually on Tuesday. Apple shares were rising 0.4%.

Nvidia is seeing increased orders for its H20 artificial intelligence chip from Chinese companies like Alibaba , ByteDance and Tencent as demand for DeepSeek's low-cost AI models rises, Reuters reported. Nvidia shares were down 1.6%.

Rocket Lab USA shares fell past 9% after a short-seller report alleged that the company "misled investors" about the likelihood that its Neutron rocket will launch in mid-2025.