Thanks for your very useful/helpful answer to my recent question about TSAT. Now I'd like to ask a similar question about MDA:
Could you dive into MDA's recent quarter and provide your opinion in general, and also specifically regarding whether you think anything useful is revealed about the financial aspects of the nascent Telesat/MDA/Spacex arrangement associated with MDA's contract to build LEO satellites for TSAT, and also the benefit to MDA of other irons it has in the fire (e.g. Chorus).
Thanks! Peter
MDA’s Q3 saw EPS slightly miss analysts’ estimates coming in at $0.08, missing by $0.02. Revenue showed signs of growth, up 19% year-over-year to $204.7M, beating estimates of $195.2M. Net income was $9.3M, down by $17.9M against the same period in the prior year. Backlog grew to $3.1B, which includes $2.1B in revenue attributed to being awarded the Telesat Lightspeed LEO contract in Q3. MDA also recently closed the acquisition of SatixFY Communications. MDA iterated that the development of CHORUS is on pace and parts of CHORUS are in production in the Montreal facility. SpaceX will be the launch partner for CHORUS with a confirmed launch window in Q4 2025. MDA displayed a solid Q3 and we feel its large backlog will serve the company well going forward. We think this name is buyable for more aggressive investors.