Maxar Technologies Ltd. (MAXR) Q2 Revenues Miss

Maxar Technologies Ltd. (NYSE: MAXR) reported Q2 EPS of $4.94, which does not compare to the analyst estimate of $1.06. Revenue for the quarter came in at $439 million versus the consensus estimate of $560.3 million.

Net income of $306 million which included an after-tax gain on disposal of discontinued operations of $304 million, net of $25 million in taxes, from the sale of the MDA Business which closed on April 8, 2020

“Demand has remained resilient in the current environment as our customers continue to rely on us for important national security and commercial missions. We generated another quarter of solid revenue growth in Earth Intelligence while Space Infrastructure returned to growth on the heels of recent diversified bookings from both civil and commercial customers,” said Dan Jablonsky, CEO. “Importantly, we exercised our call option on the remaining 50% of 3D-data provider Vricon that we did not already own, bolstering our lead in Earth Intelligence and the long-term growth profile of the company.”

Jablonsky continued, “Our results this quarter further reflect progress on our multi-year strategy to strengthen our company and position it for sustained revenue, profit and cash flow growth. We are executing well against our strategic priorities for 2020 while continuing to respond to the global COVID-19 pandemic by focusing on the protection of the health and safety of our team members, families, customers and communities.”

“We reduced our indebtedness and leverage given the recent closure of the MDA divestiture and ended the quarter with over $500 million in liquidity. Importantly, we extended our debt maturity schedule with the swap of $150 million of our 2023 notes with new bonds due 2027,” stated Biggs Porter, CFO. “Performance in the quarter was solid, with revenue growth across both segments and improved Adjusted EBITDA margins and cash flow. While the existence of the COVID pandemic remains a risk to our operations and the operations of our customers, we have thus far been able to manage the crisis roughly in line with expectations. Given that, and the recent addition of Vricon, we are modestly increasing our revenue guidance to flat to mid-single digit growth for 2020 and increasing and narrowing our outlook for Adjusted EBITDA to a range of $415 million to $445 million.2”

For earnings history and earnings-related data on Maxar Technologies Ltd. (MAXR) click here.

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