Maxar Technologies Ltd. Shares Surge on Multi-Billion Dollar EOCL Award and Updated Guidance
2022.05.25 21:35
Maxar Technologies Ltd. (MAXR) Shares Surge on Multi-Billion Dollar EOCL Award and Updated Guidance
Maxar Technologies (NYSE:MAXR) shares jumped 15% Wednesday after the space technology company received a satellite imagery contract from an agency of the Defense Department.
The National Reconnaissance Office awarded the 10-year contract for the government’s Electro-Optical Commercial Layer (EOCL) program, which is an effort to bring in multiple commercial satellite makers from the U.S.
Maxar said the contract is worth up to $3.24 billion, including a five-year base contract and a five-year option after that.
Maxar previously was the only provider of commercial satellite equipment. The National Reconnaissance Office also gave contracts to BlackSky (BSKY) and Planet and said the billions of dollars worth of agreements is a “historic” expansion of its commercial satellite acquisition program.
In addition to the contract news, Maxar narrowed its full-year 2022 sales and adjusted earnings guidance for its Earth Intelligence unit and for the whole company. Earth Intelligence revenue guidance is now a range between $1.170 billion and $1.220 billion, and adjusted earnings before interest, taxes, depreciation and amortization for the unit is a range between $520 million and $555 million.
Total company revenue is projected to be in a range of $1.805 billion and $1.855 billion, and total company adjusted EBIDTA is seen in a range between $455 million and $505 million.
By Liz Moyer
