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Maxar (MAXR) to Report Q2 Earnings: What's in the Cards?

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Maxar Technologies Inc. is slated to report second-quarter 2020 results on Aug 5, after the closing bell. In the March-end quarter, the company reported negative earnings surprise of 55.1%.

The Westminster, CO-based Earth Intelligence and Space Infrastructure innovator is expected to have recorded lower consolidated revenues on a year-over-year basis. This might be primarily caused by decline in revenues in the Space Infrastructure segment due to reduced volumes of commercial programs alongside impacts of the coronavirus pandemic.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.

Factors at Play

During the quarter under review, Maxar completed the sale of the MDA business to Neptune Acquisition Inc. for $729 million. Also, the company inked contracts with the U.S. National Geospatial-Intelligence Agency to deliver land cover classification and change detection services through a combination of the Janus Geography program and the General Services Administration’s IT Schedule 70.

Maxar was selected to support Dynetics, a wholly-owned subsidiary of Leidos, in designing and building a Human Landing System for NASA’s Artemis program, which will send the first woman and the next man to the Moon by 2024 and enable future crewed missions to Mars. Maxar secured a million-dollar contract from Intelsat to build four 1300-class geostationary communications satellites.

Maxar was chosen by the U.S. Department of Homeland Security to develop an analytics system for tracking the behavior of vehicles in multiple domains at scale. The contract, valued at $23 million with five years of performance, is administered through the U.S. Department of the Interior. Maxar closed its previously-announced acquisition of 3D data and analytics firm Vricon for almost $140 million. Such developments are likely to have had a positive impact on the company’s second-quarter top line.

For the June-end quarter, the Zacks Consensus Estimate for aggregate revenues is pegged at $428 million that indicates a decline of 12.7% from the year-ago quarter’s reported figure. Adjusted loss per share is pegged at 21 cents, which calls for deterioration of 187.5% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model predicts an earnings beat for Maxar this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Maxar’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +31.71% as the former is pegged at a loss of 14 cents and the latter at a loss of 21 cents.

Maxar Technologies Ltd. Price and EPS Surprise

Maxar Technologies Ltd. Price and EPS Surprise

Maxar Technologies Ltd. price-eps-surprise | Maxar Technologies Ltd. Quote

Zacks Rank: Maxar carries a Zacks Rank #2, at present.

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter.

AMETEK, Inc. (AME - Free Report) is slated to release second-quarter 2020 results on Aug 4. It has an Earnings ESP of +3.96% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

JELD-WEN Holding, Inc. (JELD - Free Report) is scheduled to release second-quarter 2020 results on Aug 4. The company has an Earnings ESP of +10.09% and a Zacks Rank #2.

WEC Energy Group, Inc. (WEC - Free Report) has an Earnings ESP of +0.96% and carries a Zacks Rank of 2. The company is set to report second-quarter 2020 results on Aug 4.

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