Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) shares plunged by 30% on Thursday, coming from revenue losses and a poor outlook for adjusted EBITDA. While revenue almost tripled, many worry this is a short-term gain attributed to acquisitions made by Lightspeed stock.
Yet at the same time, another tech stock climbed 18% after earnings, beating analyst estimates and increasing its full-year guidance. So, let’s look at this tech stock and why Motley Fool investors may want to consider it over Lightspeed stock.
What happened?
Maxar Technologies (TSX:MAXR)(NYSE:MAXR) shares climbed 18% after reporting its earnings on Thursday. The aerospace company announced diluted net income of $0.19 per share, adjusted EBITDA of $113 million, and revenue of $437 million. This beat analyst estimates of $0.15 per share and is well above the $0.02 loss from a year ago. While revenue beat estimates, it was an increase from last year’s $436 million.
It comes at a good time for the stock, which has seen shares fall by 33% before the earnings report came in. That’s compared to Lightspeed stock, which is up 60% even after the share drop. This recent news comes, as the company made several key announcements that long-term investors will be interested to hear. Let’s take a look.
So what?
While revenue missed estimates, the company has been making strategic moves to create solid growth. That’s more than Lightspeed stock can say at this point. Maxar stock signed a contract with a fifth “U.S. ally” to upgrade ground infrastructure. It was awarded two GEO satellites by Sirius XM and is launching two satellites for Legion construction’s program in March to June 2022.
Furthermore, the company increased its full-year guidance for both adjusted EBITDA and cash flow. Maxar stock now boasts a backlog of $2.1 billion compared to $1.9 billion as of Dec. 2021. That’s a lot of cash flow coming towards this company as the pandemic and supply chain demands lessen.
Now what?
I’m not saying that Lightspeed stock won’t be a good buy eventually. In fact, for long-term Motley Fool investors, now could be a solid time. However, if you want returns a bit faster, then Maxar stock certainly has potential.
With contracts won, satellites in place, and a huge backlog, Maxar stock is a prime target for returns over the next year. Even after the jump, shares have a potential upside of 13% for the next year according to analysts. But that’s likely to increase, as they look over this recent earnings report. Furthermore, it offers a valuable EV/EBITDA of 12.59 as of writing.
While Lightspeed stock may be in the headlines, Maxar stock is also a solid long-term hold for Motley Fool investors. As the company chips away at its backlog and gains more contracts, you can be sure to see returns return to normal. For reference, that could mean the all-time highs near $100 per share from before the market crash in 2020.
