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Snowball research notes – price crash series

Why Maxar Technologies (MAXR) Shares Crashed 20%?

by | Mar 2, 2019

Maxar Technologies (MAXR)

M. Cap: $311 million

The company operates in three segments: (a) Space Systems – a supplier of space-based and ground-based infrastructure and information solutions; (b) Imagery – a leading supplier of high-resolution earth imagery and radar data; (c) Services – a provider of advanced geospatial information, applications, and analytic services.

Reason for the stock price crash

On March 1, 2019, shares of Maxar crashed20%.  This could be due to a few reason: (a) The company announced a poor quarterly result; and (b)  The company shelved the idea of exploring strategic alternatives for the struggling business unit, GEO Comsat; and  (c) dividend cut.

The fourth quarter revenue declined predominantly due to the continuation of headwinds experienced throughout 2018 as the GEO Comsat market remains in a cyclical downturn. This was offset by revenue growth from Imagery and Services segments. Moreover, the company announced restructuring activities which could generate annual cost savings of $60-$70 million.                                  

FY 2018 10-K

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