Maxar Technologies Inc (NYSE:MAXR) is selling off sharply Tuesday morning after the company reported worse-than-expected earnings and revenue results for the first quarter.
What Happened: Maxar Technologies reported first-quarter earnings of ($1.30) per share, which came in well below the estimate for earnings of $1.06 per share. The company reported revenue of $392 million, missing the consensus estimate of $560.3 million.
Related Link: A Look Into Maxar Technologies Debt
"We continued this quarter to make progress toward achieving our longer-term targets, including efforts to drive sustainable growth in both our Earth Intelligence and Space Infrastructure segments and to reduce our debt and leverage,” said Dan Jablonsky, president and CEO of Maxar Technologies.
“Revenue and earnings were negatively impacted by a $28 million charge related to the Sirius-XM7 satellite program. Without this charge, we performed in-line with our expectations for the quarter. Importantly, we issued ten million shares this quarter and used the proceeds to reduce indebtedness. This transaction strengthens our financial position and further positions us for continued growth,” said Biggs Porter, CFO of Maxar Technologies.
Price Action: Maxar Technologies traded as high as $58.75 and as low as $8.65 over a 52-week period. At last check Tuesday, the stock was down 24% at $29.55.