Maxar (MAXR) To Report Q4 Earnings: What's In The Offing?
Zacks Investment Research | Feb 26, 2020 07:49AM ET
Maxar Technologies Inc. (TSX:MAXR) is scheduled to report fourth-quarter 2019 results on Mar 2, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 10%, missing the Zacks Consensus Estimate by 4 cents.
The Westminster, CO-based company has been making progress on its near-term priorities for sustained top and bottom-line growth. This includes efforts to reduce leverage levels, re-engineer the Space Solutions business, and position the Imagery and Services businesses for long-term growth. It is focused on creating a leaner organization and reducing costs, while improving capital structure to prioritize investments in its core areas of Earth Intelligence and Space Infrastructure.
That said, Maxar is expected to have recorded lower aggregate revenues on a year-over-year basis in the fourth quarter, primarily due to headwinds in the Space Systems segment despite a favorable Imagery and Services unit.
Factors at Play
During the fourth quarter, Maxar secured a $14.2 million contract to develop automated, cloud-based geospatial intelligence (GEOINT) analysis architecture for the U.S. Air Force. It delivered the robotic Sample Handling Assembly for NASA’s Mars 2020 rover. These are expected to get reflected positively in the upcoming results.
The company inked a joint statement of strategic intent and cooperation with the Australian Space Agency in the quarter. Maxar closed the Palo Alto real estate sale and leaseback agreements for a gross sale price of $291 million. It utilized the sale proceeds and senior secured notes offering to repay all of the borrowings that were outstanding as of Sep 30, 2019 under revolving credit facility and term loans.
Maxar garnered important wins in its Space Systems business, including initial work on Canadarm3 and the TEMPO instrument for NASA. The company saw solid bookings and revenue growth in Imagery and Services segments. These include a four-year contract for Global Enhanced GEOINT Delivery service, and the addition of another country to the installed base for its Rapid and Direct Access Program. The company’s performance is expected have benefited from these positives.
For the December quarter, the Zacks Consensus Estimate for total revenues stands at $435 million, implying a decline of 12.3% from the year-ago quarter’s reported figure. Adjusted loss per share is pegged at 16 cents, indicating 88.4% narrower loss year over year.
What Our Model Says
Our proven model doesn’t predict an earnings beat for Maxar this time around. The combination of a positive Zacks Investment Research
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