The shares of Maxar Technologies are down by over 10% today after the company delayed the launch of its next-gen satellite.
Maxar Pushes Back Satellite Launch Date To 2022
Space company Maxar Technologies announced yesterday that it had postponed the launch of its next-generation satellite till next year. The company was supposed to launch the next-generation imagery satellites in the fourth quarter of the year but has now pushed it back till next year.
Maxar CEO Dan Jablonski revealed this to investors during their earnings call yesterday, stating that they had to move the launch date. This latest development has seen the company’s stock downgraded by some analysts.
Canaccord Genuity previously rated Maxar as a buy but has downgraded the stock to a hold following this recent announcement. The firm said the delay calls into question Maxar’s long-term financial goals.
Maxar’s WorldView Legion is its constellation of six imagery satellites and is the primary reason why it continues to obtain lucrative contracts from the United States defense and intelligence agencies. However, Maxar has pushed back the first Legion launch several times. The company is now targeting to launch it between March and June next year.
Maxar’s Stock Price Plunges
The news sent Maxar’s stock price plummeting by over 10% earlier today. Canaccord Genuity analyst Austin Moeller said it is now more likely that the Legion constellation will not be fully operational with significant capacity utilization until 2023.
Maxar’s stock has underperformed following recent disappointments. MAXR performed excellent earlier this year, with Goldman Sachs and Morgan Stanley each giving it buy ratings, leading to a rally above $50.
However, MAXR has lost its appeal in recent months, and it is currently down by over 20% year-to-date. It began 2021 trading at $38 per share, but it is now down to the $30 region. With the continued delay, MAXR could suffer further losses over the coming months.