Rocket Lab Stock Is Shooting Higher Thursday: What's Fueling The Launch?

Rocket Lab USA Inc RKLB shares are trading higher Thursday after the company announced it was selected by Kratos Defense & Security Solutions Inc KTOS to provide a hypersonic test flight for the U.S. Department of Defense (DOD).

What To Know: Rocket Lab was awarded a new Hypersonic Accelerator Suborbital Test Electron (HASTE) launch contract for the DOD by Kratos under the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program.

The launch agreement represents the first full-scale flight test to be awarded by Kratos under the MACH-TB 2.0 contract, which is a $1.45 billion program designed to quickly expand opportunities to test hypersonic technologies.

“In less than two years since its first launch, HASTE has quickly emerged as a leading commercial test platform of hypersonic systems. With our operational speed and cadence, and the ability to serve multiple mission profiles all in one platform, HASTE is helping to move the needle on hypersonic innovation,” said Peter Beck, founder and CEO of Rocket Lab.

“I’m confident this will be the first of many new opportunities to serve the nation through the MACH-TB program, and we’re proud to be working alongside Kratos to bring this test flight to the launch pad on a rapid timeline.”

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The news comes after Rocket Lab’s HASTE was selected to support hypersonic test launches as part of two major government defense initiatives in the U.S. and U.K. earlier this month.

The U.S. Air Force selected Rocket Lab to participate in its $46 billion Enterprise-Wide Agile Acquisition contract, which runs through 2031 and aims to accelerate the procurement of innovative technologies, engineering services and technical solutions.

The U.K.’s Ministry of Defence also selected Rocket Lab under a $1.3 billion framework aimed at accelerating the development of advanced hypersonic capabilities.

Rocket Lab is scheduled to report earnings results for the first quarter after the market close on May 8. Analysts are anticipating a loss of 12 cents per share and revenue of $121.49 million, according to estimates from Benzinga Pro.

RKLB Price Action: Rocket Lab shares were up 6.63% at $21.63 at the time of publication Thursday, according to Benzinga Pro.

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