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Maxar (MAXR) to Develop 14 Spacecraft Platforms for L3Harris

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Maxar Technologies (MAXR - Free Report) announced that it will be working with L3Harris Technologies for the design and production of 14 spacecraft platforms and support for the latter’s Tranche 1 Tracking Layer contract with the Space Development Agency.

Maxar continues to benefit from global security threats, surging defense budgets and increasing demand for high-quality imagery and value-added services. The robust demand for space-based intelligence, surveillance, reconnaissance and communications bodes well.

The Tranche 1 Tracking Layer is aimed at improving missile warning and tracking capabilities of traditional and advanced missile threats, including hypersonic missile systems and limited global indications of the National Defense Space Architecture.

It will provide a strong base to accommodate various mission payloads such as Ka-band communications, optical terminals for space mesh networking and infrared sensors. Apart from that, Maxar will also provide base related to ground, operations and sustainment support.

The platforms will be manufactured by Maxar at its factories in Palo Alto and San Jose, CA, for delivery in 2024, and launches are expected to start in April 2025.

Recently, Maxar was awarded an Electro-Optical Commercial Layer contract by the U.S. National Reconnaissance Office. The contract included a five-year base contract worth $1.5 billion with five additional years of options through 2032.

Maxar is a space technology firm providing satellite imagery, expert intelligence services along with spacecraft and robotics for space exploration, research and national security.

Recently, the company reported a loss per share of 41 cents in second-quarter 2022 against earnings of 60 cents in the prior-year quarter.

Quarterly revenues were $438 million, down 7.4% from the year-ago quarter’s $473 million. Weakness at Earth Intelligence and Space Infrastructure contributed to the top line.

Revenues from Space Infrastructure declined to $186 million from $206 million reported in the prior-year quarter. Revenues declined due to lower revenues from commercial and U.S. government customers.

Recent Quarterly Performance of Peers

Iridium Communications (IRDM - Free Report) reported earnings of 4 cents per share in second-quarter 2022, ahead of the Zacks Consensus Estimate of breakeven earnings. The company delivered 3 cents in the prior-year quarter.

Quarterly revenues of $174.9 million, increasing 17% from the year-ago quarter’s levels. The upside can be attributed to higher demand for equipment and new subscriber activations. The top line surpassed the consensus mark by 6.6%. Total service revenues rose 10% year over year to $132.9 million. The upside can be attributed to strong revenues from a growing subscriber base.

Globalstar (GSAT - Free Report) reported a quarterly loss of 1 cent per share in line with the Zacks Consensus Estimate. This compares to a loss of 1 cent per share a year ago.

Quarterly revenues of $36.8 million, increasing 21% from the year-ago quarter’s levels. It surpassed the Zacks Consensus Estimate by 23.86%. The upside can be attributed to higher commercial IoT service and SPOT service revenues due to subscriber growth and improved average revenue per user. It was partly offset by lower subscriber equipment and commercial IoT equipment sales due to supply-chain constraints.

EchoStar (SATS - Free Report) reported quarterly earnings of 16 cents per share. This compares to earnings of 41 cent per share a year ago.

Quarterly revenues of $499.3 million, this compares to year-ago revenues of $499.8 million. Revenues benefitted from higher equipment sales to domestic and international enterprise customers, partly offset by lower service revenue.