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Maxar (MAXR) Q1 Loss Narrower Than Expected, Revenues Rise Y/Y

·4 min read

Maxar Technologies Inc. MAXR reported a loss per share of 10 cents for first-quarter 2022 compared with a loss of $1.30 reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter loss was pegged at 12 cents.

The company reported quarterly revenues of $405 million, improving from the year-ago quarter’s $392 million. The upside can be attributed to increased revenues at the Space Infrastructure. The top line also surpassed the consensus mark of $399.5 million.

Maxar Technologies Inc. Price, Consensus and EPS Surprise

Maxar Technologies Inc. Price, Consensus and EPS Surprise
Maxar Technologies Inc. Price, Consensus and EPS Surprise

Maxar Technologies Inc. price-consensus-eps-surprise-chart | Maxar Technologies Inc. Quote

Segmental Details

Revenues from Earth Intelligence increased marginally to $251 million. The top-line performance was primarily driven by increases from commercial, international defense and intelligence customers, partly offset by a decline in revenues from the US government. The segment’s adjusted EBITDA margin was down to 39.4% million from 42.8% a year ago.

Revenues from Space Infrastructure increased to $177 million from $155 million reported in the prior-year quarter. Revenues increased due to a $28-million impact of the SXM-7 satellite's non-performance in the three months ending Mar 31, 2021, which did not recur in the quarter under review. Adjusted EBITDA surged to $19 million from a loss of $12 million recorded a year ago.

Other Details

Total quarterly adjusted EBITDA was $84 million compared with $67 million a year ago, with respective margins of 20.7% and 17.1%.

As of Mar 31, 2022, the order backlog decreased to $1,621 million from $1,893 million as of Dec 31, 2021. The decrease in backlog was primarily due to decreases in the Earth Intelligence and Space Infrastructure segments.

The selling, general and administrative (SG&A) costs were $104 million compared with $84 million in the prior-year quarter. The increase was primarily due to an increase in labor-related expenses, driven by annual merit increases and fringe benefits.

Cash Flow & Liquidity

As of Mar 31, 2022, Maxar generated $48 million of cash from operating activities compared with $27 million in the prior year. The company incurred a capital expenditure of $64 million, driven by the Worldview Legion program.

As of Mar 31, 2022, the company had $22 million in cash and cash equivalents compared with $47 million in the quarter ended Dec 31, 2021. As of Mar 31, 2022, the company had long-term debt of $2,060 million compared with $2,062 million in the quarter ended Dec 31, 2021.

Guidance

For 2022, Maxar expects revenues of $1,790-$1,870 million. It expects an adjusted EBITDA of $440-$520 million. The operating cash flow is expected to be $340-$420 million.

Zacks Rank & Stocks to Consider

Maxar currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are InterDigital IDCC, Vishay Intertechnology VSH and Pure Storage PSTG. InterDigital and Vishay Intertechnology currently sport a Zacks Ranks #1 (Strong Buy), whereas Pure Storage carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.28 per share, decreasing 27% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 141.13%. Shares of InterDigital have declined 15.3% in the past year.

The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.

Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 4.96%. Shares of Vishay Intertechnology have declined 20.3% in the past year.

The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at 86 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 30.9%.

Pure Storage’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 99.2%. Shares of Pure Storage have gained 43.3% in the past year.


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