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What's in the Cards for Maxar (MAXR) This Earnings Season?

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Maxar Technologies Inc. (MAXR - Free Report) is scheduled to report first-quarter 2020 results on May 11, after the closing bell. In the last reported quarter, the company posted a negative earnings surprise of 26%.

The Westminster, CO-based company is expected to have recorded lower aggregate revenues on a year-over-year basis. The apprehension is stemming from expectations of a net decline in revenues at the Space Infrastructure segment resulting from a reduced volume in the geostationary satellite manufacturing business.

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

Factors at Play

During the quarter under review, the Defence Geographic Agency of The Netherlands Ministry of Defence subscribed to Maxar’s cloud-based geospatial intelligence (GEOINT) platform, SecureWatch. Maxar was chosen by NASA to perform an in-space assembly demonstration using a lightweight robotic arm. The arm, named SPIDER (Space Infrastructure Dexterous Robot), will be integrated with the spacecraft bus Maxar is building for NASA’s Restore-L project. The company’s quarterly performance is expected to have benefited from these developments.

Maxar was selected by Intelsat to manufacture Intelsat 40e, a geostationary communications satellite scheduled to launch in 2022. Maxar will integrate NASA’s Tropospheric Emissions: Monitoring of Pollution (TEMPO) payload with the Intelsat 40e satellite. The company finalized a contract (valued at $5 million) with NASA to deliver a robotic arm called Sample Acquisition, Morphology Filtering and Probing of Lunar Regolith (SAMPLR). Vulcan renewed its SecureWatch subscription with a multi-year, multi-million dollar agreement. Vulcan uses Maxar’s platform for maritime domain awareness to detect illegal, unreported and unregulated (IUU) fishing for law enforcement. The company’s first-quarter results are expected to reflect the impact of these factors.

In spite of these positives, the Zacks Consensus Estimate for first-quarter total revenues is pegged at $420 million that indicates a decline of 16.7% from the year-ago quarter’s reported figure. The consensus mark for adjusted loss per share is pegged at 69 cents, which calls for an improvement of 30.3% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t 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. But that’s not 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 0.00% as both are pegged at a loss of 69 cents.

Maxar Technologies Ltd Price and EPS Surprise

Zacks Rank: Maxar currently carries a Zacks Rank #3.

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 time around.

Grocery Outlet Holding Corp. (GO - Free Report) is slated to release first-quarter 2020 results on May 11. It has an Earnings ESP of +33.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Logitech International S.A. (LOGI - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on May 11. The company has an Earnings ESP of +8.33% and a Zacks Rank #1.

Fate Therapeutics, Inc. (FATE - Free Report) has an Earnings ESP of +13.16% and carries a Zacks Rank of 2. The company is set to report first-quarter 2020 results on May 11.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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