A month has gone by since the last earnings report for Maxar Technologies . Shares have added about 51.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Maxar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Maxar’s Q4 Sales Beat Estimates, Earnings Rise Y/Y
Maxar reported earnings per share of 94 cents for fourth-quarter 2021 against a loss of 65 cents reported in the prior-year quarter.
The Zacks Consensus Estimate for fourth-quarter earnings stood at 6 cents.
Income from continuing operations came in at 94 cents per share against the loss of 85 cents reported in the prior-year quarter. The improvement was primarily driven by a $49-million reversal of orbital receivables allowance and a decrease in total product and services costs of $34 million within the Space Infrastructure segment in the reported quarter. Further, a write-off of $33 million prepaid assets for the three months ended Dec 31, 2020, which did not recur for the corresponding period in 2021, led to this outperformance.
The company reported quarterly revenues of $468 million, improving marginally from the year-ago quarter’s $467 million. The upside can be attributed to an increase in revenues at the Earth Intelligence segment, partially offset by a decline in Space Infrastructure segment revenues. The top line also marginally surpassed the consensus mark of $466 million.
For 2021, the company reported net income per share of 63 cents compared with $4.99 reported in 2020. Nonetheless, total revenues increased to $1,770 million from the $1,723 million reported in 2020. This outperformance was primarily driven by an increase in revenues across both its segments – Space Infrastructure and Earth Intelligence.
For 2021, Product revenues soared to $678 million from $633 million recorded in 2020. Service revenues came in at $1,092 million, inching up from the previous year’s $1,090 million.
The Westminster, CO-based company made considerable progress on its strategic growth plans during 2021. The company won a number of notable awards from customers, including the National Reconnaissance Office, the National Geospatial Intelligence Agency, the U.S. Army, several key U.S. allies, and a number of leading technology companies.
Segmental Details
Revenues from Earth Intelligence rose 12% year over year to $289 million. The increase was primarily buoyed by a $16-million rise in revenues from international defense and intelligence customers and a $13-million increase in commercial programs. The segment’s adjusted EBITDA jumped to $130 million from $106 million a year ago.
Revenues from Space Infrastructure plunged to $199 million from $224 million reported in the prior-year quarter. This decrease was due to a $24-million decrease in revenues from U.S. government contracts. Adjusted EBITDA surged to $17 million from $13 million recorded a year ago.
Other Details
Total quarterly adjusted EBITDA was $112 million compared with $95 million a year ago, with respective margins of 23.9% and 20.3%.
For 2021, order backlog decreased to $1,893 million from $1,904 million compared to the previous year.
Cash Flow & Liquidity
During 2021, Maxar generated $281 million of cash from operating activities compared with $189 million in the prior year. For 2021, the company incurred capital expenditure of $234 million and generated free cash flow of $60 million.
As of Dec 31, 2021, the company had $47 million in cash and cash equivalents with $2,062 million of long-term debt.
2022 Guidance
Maxar expects 2022 revenues to be within $1.79 billion to $1.87 billion, implying a growth of 3% year on year, at the midpoint. Total adjusted EBITDA is expected to be between $440 million and $520 million, implying a 13% growth year on year, at the midpoint. Operating cash flows for 2022 are expected to be in the range of $340 million to $420 million. Capital expenditures are expected to be between $300 million and $320 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Maxar (MAXR) Up 51.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Maxar Technologies . Shares have added about 51.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Maxar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Maxar’s Q4 Sales Beat Estimates, Earnings Rise Y/Y
Maxar reported earnings per share of 94 cents for fourth-quarter 2021 against a loss of 65 cents reported in the prior-year quarter.
The Zacks Consensus Estimate for fourth-quarter earnings stood at 6 cents.
Income from continuing operations came in at 94 cents per share against the loss of 85 cents reported in the prior-year quarter. The improvement was primarily driven by a $49-million reversal of orbital receivables allowance and a decrease in total product and services costs of $34 million within the Space Infrastructure segment in the reported quarter. Further, a write-off of $33 million prepaid assets for the three months ended Dec 31, 2020, which did not recur for the corresponding period in 2021, led to this outperformance.
The company reported quarterly revenues of $468 million, improving marginally from the year-ago quarter’s $467 million. The upside can be attributed to an increase in revenues at the Earth Intelligence segment, partially offset by a decline in Space Infrastructure segment revenues. The top line also marginally surpassed the consensus mark of $466 million.
For 2021, the company reported net income per share of 63 cents compared with $4.99 reported in 2020. Nonetheless, total revenues increased to $1,770 million from the $1,723 million reported in 2020. This outperformance was primarily driven by an increase in revenues across both its segments – Space Infrastructure and Earth Intelligence.
For 2021, Product revenues soared to $678 million from $633 million recorded in 2020. Service revenues came in at $1,092 million, inching up from the previous year’s $1,090 million.
The Westminster, CO-based company made considerable progress on its strategic growth plans during 2021. The company won a number of notable awards from customers, including the National Reconnaissance Office, the National Geospatial Intelligence Agency, the U.S. Army, several key U.S. allies, and a number of leading technology companies.
Segmental Details
Revenues from Earth Intelligence rose 12% year over year to $289 million. The increase was primarily buoyed by a $16-million rise in revenues from international defense and intelligence customers and a $13-million increase in commercial programs. The segment’s adjusted EBITDA jumped to $130 million from $106 million a year ago.
Revenues from Space Infrastructure plunged to $199 million from $224 million reported in the prior-year quarter. This decrease was due to a $24-million decrease in revenues from U.S. government contracts. Adjusted EBITDA surged to $17 million from $13 million recorded a year ago.
Other Details
Total quarterly adjusted EBITDA was $112 million compared with $95 million a year ago, with respective margins of 23.9% and 20.3%.
For 2021, order backlog decreased to $1,893 million from $1,904 million compared to the previous year.
Cash Flow & Liquidity
During 2021, Maxar generated $281 million of cash from operating activities compared with $189 million in the prior year. For 2021, the company incurred capital expenditure of $234 million and generated free cash flow of $60 million.
As of Dec 31, 2021, the company had $47 million in cash and cash equivalents with $2,062 million of long-term debt.
2022 Guidance
Maxar expects 2022 revenues to be within $1.79 billion to $1.87 billion, implying a growth of 3% year on year, at the midpoint. Total adjusted EBITDA is expected to be between $440 million and $520 million, implying a 13% growth year on year, at the midpoint. Operating cash flows for 2022 are expected to be in the range of $340 million to $420 million. Capital expenditures are expected to be between $300 million and $320 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.