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Key Factors Shaping the Fate of Maxar's (MAXR) Q4 Earnings
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Maxar Technologies Inc. is scheduled to report fourth-quarter 2021 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 6 cents per share on revenues of $465.57 million.
This earth intelligence and space infrastructure solutions provider posted mixed results in the last reported quarter. The bottom line beat the Zacks Consensus Estimate, while the top line missed the same. The bottom line came in at 19 cents per share, beating the Zacks Consensus Estimate by 4 cents, delivering a surprise of 26.7%. However, quarterly revenues totaled $437 million, missing the consensus mark of $453 million.
Over the trailing four quarters, the company surpassed estimates on two occasions and missed on other two, the average negative surprise being 472.17%.
The Zacks Consensus Estimate for Maxar’s fourth-quarter earnings per share has remained unchanged in the past 90 days. This compares favorably with the year-ago quarter’s loss of 85 cents per share, indicating a whopping 107.06% improvement year on year. However, the Zacks Consensus Estimate for the quarterly revenues suggests a year-over-year fall of 0.31%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Maxar this time around. 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. However, that is not the case here, as elaborated below.
Earnings ESP: Maxar has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxar currently carries a Zacks Rank of 3.
Factors at Play
Maxar’s fourth-quarter performance is likely to have been driven by solid bookings growth and an increasing customer base in both the Earth Intelligence and Space Infrastructure segments.
During December 2021, this Westminster, CO-based company announced contract extensions with three long-standing international defense and intelligence customers. Totaling more than $100 million, the agreements allow these customers to directly task and download 30 cm-class satellite imagery to their ground stations from Maxar’s constellation under its Direct Access Program. This program enables defense, intelligence and commercial customers to access advanced Earth imaging satellites with encrypted downlinks and data distribution rights.
Further, in October, Maxar secured an Option Year 2 contract renewal from the U.S. National Geospatial-Intelligence Agency (“NGA”) for the Global Enhanced GEOINT Delivery (G-EGD) program. The contract, valued at $44 million, is the second of three option years and has a total value of up to $176 million. This will aid Maxar in providing more than 400,000 U.S. government users with on-demand access to high-resolution commercial imagery. These events are likely to have boosted the company’s revenues during the quarter under discussion.
However, delays in the construction of satellites and the procurement of required components and launch vehicles are anticipated to have hurt Maxar’s business. Moreover, increasing operating expenses and higher lead time associated with supply-chain woes are other headwinds. These factors are likely to have dented the company’s margins to some extent during the to-be-reported quarter.
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have rallied 23.6% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter fiscal 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have risen 31.1% in the past year.
Nielsen Holdings has an Earnings ESP of +2.78% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, indicating a fall of 32.1% from the year-ago quarter’s levels. Shares of NLSN have lost 26.3% in the past year.
Image: Bigstock
Key Factors Shaping the Fate of Maxar's (MAXR) Q4 Earnings
Maxar Technologies Inc. is scheduled to report fourth-quarter 2021 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 6 cents per share on revenues of $465.57 million.
This earth intelligence and space infrastructure solutions provider posted mixed results in the last reported quarter. The bottom line beat the Zacks Consensus Estimate, while the top line missed the same. The bottom line came in at 19 cents per share, beating the Zacks Consensus Estimate by 4 cents, delivering a surprise of 26.7%. However, quarterly revenues totaled $437 million, missing the consensus mark of $453 million.
Over the trailing four quarters, the company surpassed estimates on two occasions and missed on other two, the average negative surprise being 472.17%.
Maxar Technologies Inc. Price and EPS Surprise
Maxar Technologies Inc. price-eps-surprise | Maxar Technologies Inc. Quote
Estimate Revision Trend
The Zacks Consensus Estimate for Maxar’s fourth-quarter earnings per share has remained unchanged in the past 90 days. This compares favorably with the year-ago quarter’s loss of 85 cents per share, indicating a whopping 107.06% improvement year on year. However, the Zacks Consensus Estimate for the quarterly revenues suggests a year-over-year fall of 0.31%.
Earnings Whispers
Our proven Zacks model does not conclusively predict an earnings beat for Maxar this time around. 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. However, that is not the case here, as elaborated below.
Earnings ESP: Maxar has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Maxar currently carries a Zacks Rank of 3.
Factors at Play
Maxar’s fourth-quarter performance is likely to have been driven by solid bookings growth and an increasing customer base in both the Earth Intelligence and Space Infrastructure segments.
During December 2021, this Westminster, CO-based company announced contract extensions with three long-standing international defense and intelligence customers. Totaling more than $100 million, the agreements allow these customers to directly task and download 30 cm-class satellite imagery to their ground stations from Maxar’s constellation under its Direct Access Program. This program enables defense, intelligence and commercial customers to access advanced Earth imaging satellites with encrypted downlinks and data distribution rights.
Further, in October, Maxar secured an Option Year 2 contract renewal from the U.S. National Geospatial-Intelligence Agency (“NGA”) for the Global Enhanced GEOINT Delivery (G-EGD) program. The contract, valued at $44 million, is the second of three option years and has a total value of up to $176 million. This will aid Maxar in providing more than 400,000 U.S. government users with on-demand access to high-resolution commercial imagery. These events are likely to have boosted the company’s revenues during the quarter under discussion.
However, delays in the construction of satellites and the procurement of required components and launch vehicles are anticipated to have hurt Maxar’s business. Moreover, increasing operating expenses and higher lead time associated with supply-chain woes are other headwinds. These factors are likely to have dented the company’s margins to some extent during the to-be-reported quarter.
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Zscaler (ZS - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have rallied 23.6% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter fiscal 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have risen 31.1% in the past year.
Nielsen Holdings has an Earnings ESP of +2.78% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, indicating a fall of 32.1% from the year-ago quarter’s levels. Shares of NLSN have lost 26.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.