Maxar (MAXR) to Build Two Geostationary Satellites for SiriusXM
Maxar Technologies MAXR will be building two new geostationary communications satellites - SXM-11 and SXM-12 for SiriusXM SIRI per a new agreement between the two companies.
Maxar and SiriusXM have partnered on numerous occasions since 2000. The delivery of SXM-11 and -12 will take the total number of spacecrafts built by Maxar for SiriusXM to 13. In 2021, Maxar entered into an agreement to develop SXM-9 and -10 satellites for SiriusXM.
The Maxar 1300-class platform will be used to construct the SXM-11 and SXM-12 digital audio radio satellites at the company's manufacturing facilities in California.
Maxar Technologies Inc. Price and Consensus
Maxar Technologies Inc. price-consensus-chart | Maxar Technologies Inc. Quote
The combination of SXM-11 and -12 with SXM-9 and -10 will enable SiriusXM to expand the company’s audio entertainment content and improve service offerings for its subscribers.
Currently, more than 150 SiriusXM-equipped million automobiles depend on the company’s exclusive satellite network - 360L platform. The company combines SiriusXM with 360L to provide its users in the United States and Canada with improved connectivity.
Maxar is a space technology firm providing satellite imagery and expert intelligence services, along with spacecraft and robotics for space exploration, research and national security.
The company continues to expand its partnership with large defense companies to boost its Space Infrastructure segment. Also, increasing contract wins from the U.S. Department of Defense, National Reconnaissance Office and National Geospatial-Intelligence Agency are major tailwinds.
Recently, Maxar announced that it is developing XXIV satellite or “JUPITER 3” for EchoStar Corporation. JUPITER 3 will almost double the size of the Hughes JUPITER fleet over North and South America by delivering more than 500 Gbps of high-throughput satellite capacity.
In September, the company announced that it was awarded a $44 million Option Year 3 contract renewal by the U.S. National Geospatial-Intelligence Agency for the Global Enhanced GEOINT Delivery or G-EGD program.
Also, the company’s worldview legion plan is expected to boost satellite launches and provide a long-term revenue stream.
However, the company has tweaked its revenue guidance for 2022 mainly due to weakness in the Earth Intelligence segment. Maxar now expects revenues in the range of $1,755-$1,805 million compared with the earlier guided range of $1,805-$1,855 million.
At present, Maxar has a Zacks Rank #3 (Hold). Shares of the company have lost 12.3% compared with the sub-industry’s decline of 9.6% in the past year.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks ANET, Plexus PLXS each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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