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Maxar (MAXR) Incurs Loss in Q3, Revenues Miss Estimates
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Maxar Technologies Inc reported a loss per share of 5 cents in third-quarter 2022 against earnings of 19 cents per share in the prior-year quarter. The Zacks Consensus Estimate for third-quarter earnings was pegged at 31 cents per share.
The company reported quarterly revenues of $436 million, down 0.2% from the year-ago quarter’s $437 million. The top line also missed the consensus mark by 4.8%.
Revenues from the Earth Intelligence segment increased 1.5% year over year to $275 million. The top-line performance was primarily driven by higher revenues from the U.S. government and from international defense and intelligence customers, partly offset by a decline in revenues from commercial programs. The segment’s adjusted EBITDA margin was down to 41.8% from 45.8% a year ago.
Revenues from the Space Infrastructure segment increased 3.3% year over year to $186 million. The performance was driven by higher revenues from commercial and U.S. government customers. The segment’s adjusted EBITDA margin came in at 17.7%, significantly up from 7.8% reported in the year-ago quarter.
The company also announced the acquisition of Puerto Rico-based company — Wovenware. The company is engaged in service design and software development, artificial intelligence and geospatial production. The buyout is expected to improve Maxar’s machine learning and 3D data production capabilities.
Maxar Technologies Inc. Price, Consensus and EPS Surprise
Total quarterly adjusted EBITDA was $110 million compared with $113 million a year ago, with respective margins of 25.2% and 25.9%.
As of Sep 30, the order backlog increased to $2,955 million from $1,893 million as of Dec 31, 2021. The increase in backlog was primarily due to an increase in the Earth Intelligence segment.
The selling, general and administrative (SG&A) costs were $110 million compared with $89 million in the prior-year quarter.
Cash Flow & Liquidity
For the third quarter, Maxar generated $124 million in cash from operating activities compared with $19 million in the previous quarter. The company incurred a capital expenditure of $75 million, driven by the Worldview Legion program.
As of Sep 30, the company had $28 million in cash and cash equivalents compared with $15 million in the quarter ended Jun 30. As of Sep 30, the company had long-term debt of $2,172 million compared with $2,194 million in the quarter ended Jun 30.
Guidance
For 2022, Maxar now expects revenues in the range of $1,755-$1,805 million compared with the earlier guided range of $1,805-$1,855 million. Adjusted EBITDA is expected to be between $450 million and $495 million compared with the earlier guided range of $455-$505 million. The operating cash flow is expected to be $325-$355 million.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have lost 31.7% in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.22 per share, up 2.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 10.4%. Shares of CDNS have lost 19.2% in the past year.
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Maxar (MAXR) Incurs Loss in Q3, Revenues Miss Estimates
Maxar Technologies Inc reported a loss per share of 5 cents in third-quarter 2022 against earnings of 19 cents per share in the prior-year quarter. The Zacks Consensus Estimate for third-quarter earnings was pegged at 31 cents per share.
The company reported quarterly revenues of $436 million, down 0.2% from the year-ago quarter’s $437 million. The top line also missed the consensus mark by 4.8%.
Revenues from the Earth Intelligence segment increased 1.5% year over year to $275 million. The top-line performance was primarily driven by higher revenues from the U.S. government and from international defense and intelligence customers, partly offset by a decline in revenues from commercial programs. The segment’s adjusted EBITDA margin was down to 41.8% from 45.8% a year ago.
Revenues from the Space Infrastructure segment increased 3.3% year over year to $186 million. The performance was driven by higher revenues from commercial and U.S. government customers. The segment’s adjusted EBITDA margin came in at 17.7%, significantly up from 7.8% reported in the year-ago quarter.
The company also announced the acquisition of Puerto Rico-based company — Wovenware. The company is engaged in service design and software development, artificial intelligence and geospatial production. The buyout is expected to improve Maxar’s machine learning and 3D data production capabilities.
Maxar Technologies Inc. Price, Consensus and EPS Surprise
Maxar Technologies Inc. price-consensus-eps-surprise-chart | Maxar Technologies Inc. Quote
Other Details
Total quarterly adjusted EBITDA was $110 million compared with $113 million a year ago, with respective margins of 25.2% and 25.9%.
As of Sep 30, the order backlog increased to $2,955 million from $1,893 million as of Dec 31, 2021. The increase in backlog was primarily due to an increase in the Earth Intelligence segment.
The selling, general and administrative (SG&A) costs were $110 million compared with $89 million in the prior-year quarter.
Cash Flow & Liquidity
For the third quarter, Maxar generated $124 million in cash from operating activities compared with $19 million in the previous quarter. The company incurred a capital expenditure of $75 million, driven by the Worldview Legion program.
As of Sep 30, the company had $28 million in cash and cash equivalents compared with $15 million in the quarter ended Jun 30. As of Sep 30, the company had long-term debt of $2,172 million compared with $2,194 million in the quarter ended Jun 30.
Guidance
For 2022, Maxar now expects revenues in the range of $1,755-$1,805 million compared with the earlier guided range of $1,805-$1,855 million. Adjusted EBITDA is expected to be between $450 million and $495 million compared with the earlier guided range of $455-$505 million. The operating cash flow is expected to be $325-$355 million.
Zacks Rank & Stocks to Consider
Maxar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Cadence Design Systems (CDNS - Free Report) . Blackbaud sports a Zacks Rank $1 (Strong Buy) while Pure Storage and Cadence carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have lost 31.7% in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.22 per share, up 2.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 10.4%. Shares of CDNS have lost 19.2% in the past year.