Maxar Technologies Ltd. (MAXR) Misses on Q3 Revenues

Maxar Technologies Ltd. (NYSE: MAXR) reported Q3 EPS of ($7.31), $8.37 worse than the analyst estimate of $1.06. Revenue for the quarter came in at $508.2 million versus the consensus estimate of $560.3 million.

• Consolidated revenues of $508.2 million
• Net loss under IFRS of $432.5 million including $383.6 million in impairment losses and inventory obsolescence
• Net loss under IFRS of $7.31 per share; net loss excluding impairment losses of $0.83 per share
• Adjusted EBITDA of $146.3 million and adjusted EBITDA margin of 28.8 percent
• Adjusted earnings of $44.6 million and adjusted earnings per share of $0.75
• IFRS Operating Cash Flow of $119.2 million
• Adjusted Operating Cash Flow of $91.9 million; Adjusted Free Cash Flow of $29.2 million

"We made progress this quarter in executing on our four strategic priorities that focus on driving sustained growth in our Imagery and Services segments, returning our Space Systems segment to growth, achieving merger synergies, and improving cash generation with a priority to pay down debt balances and reduce leverage," stated Howard L. Lance, President & Chief Executive Officer. "In Imagery, we successfully transitioned the EnhancedView contract to the National Reconnaissance Office, in Services we won our first two task orders on the recently awarded Janus Geography IDIQ contract vehicle, and in Space Systems we won several awards related to work with NASA and the US Department of Defense," he added. "We are continuing to evaluate strategic alternatives for the GEO Comsat business and expect to make a final decision by the end of 2018," he continued. "Excluding the impact of the large GEO market decline, the rest of Maxar is delivering solid revenue growth. Combined, the new awards and developments in the quarter better position us to execute against our long-term strategy."

"The Company generated improved adjusted operating cash flow this quarter, which now stands at $160.7 million year-to-date vs. $31.7 million generated at the same point in 2017," stated Biggs Porter, Chief Financial Officer. "This allowed the Company to generate $29.2 million in adjusted free cash flow this quarter and to hold debt balances essentially flat from the second quarter of 2018," he added. "We recognized impairment losses of $345.9 million and an inventory obsolescence charge of $37.7 million related to the GEO Comsat business this quarter. This non-cash charge reflects the decline in the business and our decision to evaluate strategic alternatives for GEO Comsat."

For earnings history and earnings-related data on Maxar Technologies Ltd. (MAXR) click here.

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