A month has gone by since the last earnings report for Maxar Technologies . Shares have lost about 12.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Maxar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Maxar Q2 Loss Widens, Revenues Down Y/Y
Maxar reported a loss per share of 41 cents in second-quarter 2022 against earnings of 60 cents in the prior-year quarter. The Zacks Consensus Estimate for second-quarter earnings was pegged at 8 cents per share.
The company reported quarterly revenues of $438 million, down 7.4% from the year-ago quarter’s $473 million. Weakness at Earth Intelligence and Space Infrastructure contributed to the top line. The top line also missed the consensus mark of $453.9 million.
Revenues from Earth Intelligence increased marginally to $284 million. The top-line performance was primarily driven by higher product revenues. The segment’s adjusted EBITDA margin was down to 45.4% million from 46.3% a year ago.
Revenues from Space Infrastructure declined to $186 million from $206 million reported in the prior-year quarter. Revenues declined due to lower revenues from commercial and U.S. government customers. The segment’s adjusted EBITDA margin was down to 10.2% million from 13.1% a year ago.
Other Details
Total quarterly adjusted EBITDA was $119 million compared with $132 million a year ago, with respective margins of 27.2% and 27.9%.
As of Jun 30, 2022, the order backlog decreased to $2,945 million from $1,893 million as of Dec 31, 2021. The increase in backlog was primarily by increases in the Earth Intelligence segment.
The selling, general and administrative (SG&A) costs were $106 million compared with $88 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 Jun 30, 2022, Maxar generated $19 million cash from operating activities compared with $48 million in the prior year. The company incurred a capital expenditure of $87 million, driven by the Worldview Legion program.
As of Jun 30, 2022, the company had $15 million in cash and cash equivalents compared with $22 million in the quarter ended Mar 31, 2022. As of Jun 30, 2022, the company had long-term debt of $2,194 million compared with $2,060 million in the quarter ended Mar 31, 2022.
Guidance
For 2022, Maxar now expects revenues of $1,805-$1,855 million compared with earlier guided range of $1,790-$1,870 million. It expects an adjusted EBITDA of $455-$505 million. The operating cash flow is expected to be $300-$380 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 186.96% due to these changes.
VGM Scores
Currently, Maxar has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Maxar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
Maxar (MAXR) Down 12.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Maxar Technologies . Shares have lost about 12.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Maxar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Maxar Q2 Loss Widens, Revenues Down Y/Y
Maxar reported a loss per share of 41 cents in second-quarter 2022 against earnings of 60 cents in the prior-year quarter. The Zacks Consensus Estimate for second-quarter earnings was pegged at 8 cents per share.
The company reported quarterly revenues of $438 million, down 7.4% from the year-ago quarter’s $473 million. Weakness at Earth Intelligence and Space Infrastructure contributed to the top line. The top line also missed the consensus mark of $453.9 million.
Revenues from Earth Intelligence increased marginally to $284 million. The top-line performance was primarily driven by higher product revenues. The segment’s adjusted EBITDA margin was down to 45.4% million from 46.3% a year ago.
Revenues from Space Infrastructure declined to $186 million from $206 million reported in the prior-year quarter. Revenues declined due to lower revenues from commercial and U.S. government customers. The segment’s adjusted EBITDA margin was down to 10.2% million from 13.1% a year ago.
Other Details
Total quarterly adjusted EBITDA was $119 million compared with $132 million a year ago, with respective margins of 27.2% and 27.9%.
As of Jun 30, 2022, the order backlog decreased to $2,945 million from $1,893 million as of Dec 31, 2021. The increase in backlog was primarily by increases in the Earth Intelligence segment.
The selling, general and administrative (SG&A) costs were $106 million compared with $88 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 Jun 30, 2022, Maxar generated $19 million cash from operating activities compared with $48 million in the prior year. The company incurred a capital expenditure of $87 million, driven by the Worldview Legion program.
As of Jun 30, 2022, the company had $15 million in cash and cash equivalents compared with $22 million in the quarter ended Mar 31, 2022. As of Jun 30, 2022, the company had long-term debt of $2,194 million compared with $2,060 million in the quarter ended Mar 31, 2022.
Guidance
For 2022, Maxar now expects revenues of $1,805-$1,855 million compared with earlier guided range of $1,790-$1,870 million. It expects an adjusted EBITDA of $455-$505 million. The operating cash flow is expected to be $300-$380 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 186.96% due to these changes.
VGM Scores
Currently, Maxar has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Maxar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.