Maximus (MMS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a changin ...

Core Viewpoint - Maximus and RingCentral are identified as attractive investment opportunities as they are trading near their 52-week lows, indicating potential for recovery in an oversold market [1][9]. Group 1: Maximus Overview - Maximus stock is currently trading 28% below its 52-week high of $93, recently hitting a low of $63 due to government program cuts proposed by the Trump administration [2]. - Despite the selloff, Maximus's diversification across various countries, including Australia, Canada, and the UK, is expected to sustain the company [2]. - The company has demonstrated strong performance with a 12% EPS growth over the last five years, outpacing the S&P 500's 8% growth, although a slight contraction in earnings is anticipated [3]. Group 2: Maximus Financial Estimates - Current EPS estimates for Maximus are 1.37 for Q1 2025, 1.52 for Q2 2025, 6.08 for FY2025, and 6.02 for FY2026, with no changes in estimates over the past 30 days [4]. Group 3: RingCentral Overview - RingCentral's stock is near a 52-week low of $20, down from a high of $42, primarily affected by the tech sector's decline [4][5]. - The company has reported record free cash flow, which is crucial for navigating economic downturns and enhancing its AI initiatives [5]. - RingCentral aims to empower businesses with an AI-first platform, introducing innovations like the AI Receptionist to improve operational efficiency [5]. Group 4: RingCentral Financial Estimates - RingCentral's total sales are projected to increase by 5% this year and by another 6% in FY26, reaching $2.68 billion, with EPS expected to grow over 12% in FY25 and FY26 [6]. Group 5: Valuation Comparison - Maximus is trading at 11X forward earnings, while RingCentral is at 5.3X, both significantly below the S&P 500's forward earnings multiple of 19.2X, indicating attractive valuations [8]. Group 6: Investment Outlook - Both Maximus and RingCentral are viewed as strong buy-the-dip candidates, with current levels suggesting they are in oversold territory, presenting an ideal time for investment [9].

Maximus, Inc. (MMS) is benefiting from a robust relationship with governments, enabling it to secure long-term contracts. Buyouts expand its business processes and strengthen its client base. Dividend-seeking investors will find this stock appealing. Robust liquidity reassures the company’s financial position.MMS reported better-than-expected first-quarter fiscal 2025 results. Quarterly adjusted earnings of $1.61 per share beat the Zacks Consensus Estimate by 15.8% and increased 20.2% on a year-over-year ba ...

Maximus (MMS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often ...

Maximus (MMS) has been on a downward spiral lately with significant selling pressure. After declining 13.4% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

Maximus, Inc. (MMS) reported better-than-expected first-quarter fiscal 2025 results. Earnings and revenues beat the Zacks Consensus Estimate.Quarterly adjusted earnings of $1.61 per share beat the Zacks Consensus Estimate by 15.8% and increased 20.2% on a year-over-year basis. Revenues of $1.4 billion topped the consensus mark by 7% and rose 5.7% from the year-ago quarter.Segmental Revenues of MaximusThe U.S. Federal Services segment’s revenues of $780.7 million rose 15.3% from the year-ago reported number ...

Financial Data and Key Metrics Changes - Maximus, Inc. reported revenue of $1.40 billion for Q1 FY2025, representing a 5.7% year-over-year growth, with 6.3% on an organic basis [35] - Adjusted EBITDA margin was 11.2% and adjusted EPS was $1.61 for the quarter, compared to $1.34 in the prior year period [35] - The company completed the divestiture of its employment services businesses in Australia and South Korea, incurring divestiture charges of about $38 million, primarily due to foreign exchange losses [36][34] Business Line Data and Key Metrics Changes - US Federal Services segment revenue increased 15.3% to $781 million, driven by clinical assessments and customer service programs, with an operating income margin of 12.7% [38] - US Services segment revenue decreased 7.7% to $452 million, with an operating income margin of 9.0%, impacted by prior year excess volumes and seasonality [39] - Outside the U.S. segment revenue increased 6.0% year-over-year to $170 million, with organic growth of 10.7%, generating a profit margin of 4.8% [41] Market Data and Key Metrics Changes - The total pipeline of sales opportunities at December 31st was $41.4 billion, down from $54.3 billion reported at September 30th, with approximately 57% representing new work [25] - The company signed awards totaling $2.1 billion in Q1 FY2025, with a book-to-bill ratio of approximately 1.5 times [22] Company Strategy and Development Direction - Maximus is focused on being a value-added partner to government, leveraging its core business tied to established entitlement programs with bipartisan support [12] - The company is investing in technology modernization and AI capabilities to enhance service delivery and operational efficiency [28][29] - The strategic focus includes maintaining a balanced mix of federal and state opportunities while ensuring a diversified portfolio [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its core business despite potential uncertainties in the policy environment [14] - The company anticipates continued deal flow and is cautiously optimistic about its pipeline, with less than 2% of FY2025 revenue coming from anticipated pipeline conversions [82] - Management raised full-year guidance for revenue to $5.2 billion to $5.35 billion, reflecting strong Q1 results and the impact of the divestiture [47] Other Important Information - The Board of Directors authorized an increase of $200 million to the share repurchase program, with approximately $290 million deployed through share repurchases since the fiscal year start [11][34] - The company ended Q1 with total debt of $1.40 billion, with a net debt to EBITDA ratio increasing to 1.8 times [45] Q&A Session Summary Question: Discussion on Q1 strength and potential pull forward - Management indicated that Q1 outperformance was not a pull forward but rather a reflection of strong execution and favorable conditions [60][64] Question: Confidence in guidance and thought process - Management remains confident in guidance, emphasizing careful forecasting and visibility into new business assumptions [66][68] Question: Impact of new administration on smaller portfolio segments - Management noted that while there are small pockets of risk, core functions are expected to continue, and deal flow remains stable [70][74] Question: Medicaid program dynamics and enrollment trends - Management highlighted a significant increase in enrollment activity as individuals transition from Medicaid to state-based exchanges, indicating a fluid policy environment [101][104] Question: Outlook for veteran assessment business - Management expects stability in volume for veteran assessments, with ongoing investments in technology to improve service delivery [111][115] Question: Free cash flow rhythm and considerations - Management indicated that Q1 cash flow was impacted by timing of payments, but expects strong cash flows in the remaining quarters [120][126]

Fiscal 2025 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 6, 2025 1 | Maximus: Q1 FY25 Earnings Presentation Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document may contain non-GAAP financial information. Management uses this informa ...

Maximus (MMS) reported $1.4 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 5.7%. EPS of $1.61 for the same period compares to $1.34 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.31 billion, representing a surprise of +7.42%. The company delivered an EPS surprise of +15.83%, with the consensus EPS estimate being $1.39.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. Commission file number: 1-12997 Indicate by check mark whether the registrant has submitted electronically every Int ...