Divy cut coming With the expectation of low near-term free cash flow and high leverage point, Mr. Taylor thinks Maxar’s “steeply discounted” valuation in comparison to peers is likely to persist through 2019.
“In short, we were wrong in our assumptions both about the ability for the business to return to meaningful growth overall in the near term .."
Guiding through its final fiscal quarter of the year, Maxar told investors it expects to end 2018 with a 6.5% decline in full-year revenues. Worse, management is forecasting total capital spending to exceed $300 million this year, potentially wiping out the company's predicted $300 million to $400 million in adjusted operating cash flow and putting Maxar's cash-flow statement in the red for the year.