Shares of Maxar Technologies (NYSE:MAXR) have tanked today, down by 25% as of 1:30 p.m. EST, after the company reported third-quarter earnings with top-line results that missed the market's expectations.
Revenue in the third quarter was $436 million, versus the consensus estimate of $453.7 million. That resulted in earnings per share of $1.32. The space technology company experienced weakness in its Earth Intelligence segment, which saw revenue decline by 3%. That business provides satellite imagery and analytics to customers. The Space Infrastructure segment grew by 12%.
"Our results this quarter further reflect progress on our multi-year strategy to position Maxar for sustained revenue, profit and cash flow growth," CEO Dan Jablonsky said in a statement. "We are executing well against our strategic priorities for the year while continuing to respond to the global COVID-19 pandemic by focusing on the protection of the health and safety of our team members, families, customers and communities."
Maxar tweaked its outlook for 2020. Earth Intelligence revenue this year is now expected to be roughly flat, compared with the previous expectation of growth that would be flat to the low single digits. Space Infrastructure revenue is also forecast to be about flat, versus the previous guidance of mid-single-digit growth.
But the company reaffirmed its forecast for consolidated adjusted EBITDA, which should be $415 million to $445 million. Maxar tightened the range for its operating cash flow forecast, which is now expected to be $200 million to $250 million this year.