Core Insights - MiMedx Group, Inc. announced the publication of health economics data for the use of EPIFIX® in reconstructing cutaneous wounds after Mohs surgery, highlighting its cost-effectiveness and clinical success [1][2] Group 1: Study Findings - The study published in the Journal of Drugs in Dermatology analyzed 429 Mohs patients and demonstrated that DHACM significantly reduced adverse post-repair complications, with 97.2% of patients experiencing no complications compared to 78.7% with traditional methods [2] - Patients treated with placental allografts reached closure faster, with an average length of care of 33.3 days versus 48.3 days for those with autologous tissue repairs [2] Group 2: Industry Context - Mohs surgery is recognized as the gold standard for treating skin cancers, performed over 850,000 times annually in the U.S., primarily by dermatologists in outpatient settings [1] - The increasing evaluation of placental allografts like EPIFIX reflects a shift towards innovative approaches in high-risk surgeries, particularly as healthcare systems emphasize health economics in decision-making [2] Group 3: Company Overview - MiMedx is a leader in providing solutions for chronic and hard-to-heal wounds, with a vision to be the leading global provider of healing solutions through innovation [3]

Core Viewpoint - Maximus (MMS) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, influencing their buying and selling decisions, which in turn affects stock prices [4]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, ensuring that only the top 5% receive a 'Strong Buy' rating [9]. Maximus Earnings Estimate Revisions - Maximus is expected to earn $6.08 per share for the fiscal year ending September 2025, reflecting a year-over-year change of -0.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Maximus has increased by 2.2%, indicating a positive trend in earnings estimates [8]. Investment Implications - The upgrade to Zacks Rank 1 positions Maximus in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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].

Core Insights - Maximus, Inc. (MMS) is benefiting from strong government relationships, securing long-term contracts that provide a predictable revenue stream [3][4] - The company reported better-than-expected first-quarter fiscal 2025 results, with adjusted earnings of $1.61 per share, exceeding estimates by 15.8% and increasing 20.2% year-over-year [2] - Strategic acquisitions are enhancing MMS's business processes and client relationships, contributing to long-term organic growth [5] Financial Performance - MMS's revenues for the first quarter of fiscal 2025 reached $1.4 billion, surpassing consensus estimates by 7% and rising 5.7% from the previous year [2] - The company has consistently paid dividends, with payouts of $68.8 million, $68.7 million, $68 million, and $72.9 million from fiscal 2021 to 2024, reflecting its commitment to shareholder value [8] - The current ratio at the end of the first quarter of fiscal 2025 was 1.72, indicating strong liquidity compared to the industry average of 1.54 [9] Strategic Focus - Maximus is expanding its presence in clinical services and long-term support, driven by increasing demand for government social benefits due to longevity and complex health issues [4] - The company leverages the expertise of its workforce in government health and human services programs, differentiating itself through measurable outcomes [6] - Recent acquisitions, including a vendor for IT services for $18 million and the Stirling Institute of Australia, are enhancing MMS's capabilities and service offerings [5]

Core Viewpoint - Maximus (MMS) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - Rising earnings estimates for Maximus imply an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions, which positions Maximus favorably for potential market-beating returns [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending September 2025, Maximus is expected to earn $6.08 per share, reflecting a slight decrease of -0.5% from the previous year, but the Zacks Consensus Estimate has increased by 3.9% over the past three months [8].

Core Viewpoint - Maximus (MMS) has experienced significant selling pressure, declining 13.4% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, with analysts predicting better earnings than previously expected [1] Group 1: Stock Performance and Indicators - The stock's Relative Strength Index (RSI) reading is at 25.39, indicating it is oversold and suggesting a possible reversal in trend [5] - A stock is generally considered oversold when its RSI falls below 30, which helps investors identify potential entry points for a rebound [2][3] Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for MMS has increased by 2.2%, indicating a positive trend in earnings estimate revisions [6] - There is strong agreement among sell-side analysts in raising earnings estimates for MMS, which typically correlates with price appreciation in the near term [6] Group 3: Zacks Rank and Investment Potential - MMS currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, suggesting a strong potential for turnaround [7]

Core Insights - Maximus, Inc. (MMS) reported better-than-expected first-quarter fiscal 2025 results, with earnings and revenues surpassing the Zacks Consensus Estimate [1] Financial Performance - Quarterly adjusted earnings were $1.61 per share, exceeding the Zacks Consensus Estimate by 15.8% and increasing 20.2% year-over-year [1] - Revenues reached $1.4 billion, topping the consensus mark by 7% and rising 5.7% from the previous year [1] Segmental Revenues - U.S. Federal Services segment revenues were $780.7 million, up 15.3% year-over-year, beating the estimate of $687.2 million [2] - Outside the U.S. segment revenues increased to $169.8 million, a 6% rise from the first quarter of fiscal 2024, surpassing the anticipated $123.1 million [2] - U.S. Services segment revenues decreased to $452.3 million, down 7.7% year-over-year, missing the estimate of $497.2 million [2] Sales and Pipeline - Year-to-date signed contract awards totaled $2.08 billion as of December 31, 2024, with pending contracts amounting to $410 million [3] - The sales pipeline was valued at $41.4 billion, including $2.47 billion in pending proposals and $1.50 billion in proposals in preparation [3] - The book-to-bill ratio was 0.7 on a trailing 12-month basis as of December 31, 2024 [3] Operating Performance - Adjusted operating income was $156.62 million, an 11.6% increase year-over-year, compared to the expected adjusted operating income of $138.6 million [4] - The adjusted operating income margin improved to 11.2%, up 60 basis points year-over-year [4] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $72.7 million, down from $183.1 million in the prior quarter [5] - The company used $80 million in cash from operations, with capital expenditures of $23 million and a free cash flow outflow of $103 million [5] Updated Fiscal 2025 Guidance - Maximus raised its earnings guidance but reduced revenue expectations for fiscal year 2025, now forecasting total revenues between $5.2 billion and $5.35 billion [6] - Adjusted earnings are anticipated in the range of $5.90-$6.20 per share, higher than previous expectations [7] - Free cash flow is expected to be between $355 million and $385 million, with interest expenses anticipated at approximately $75 million [8]

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 ...

Core Insights - Maximus reported $1.4 billion in revenue for the quarter ended December 2024, a year-over-year increase of 5.7% [1] - The company's EPS for the same period was $1.61, up from $1.34 a year ago, indicating a positive trend in earnings [1] - Revenue exceeded the Zacks Consensus Estimate of $1.31 billion by 7.42%, and EPS surpassed the consensus estimate of $1.39 by 15.83% [1] Revenue Breakdown - U.S. Federal Services revenue was $780.66 million, exceeding the average estimate of $685.54 million, with a year-over-year change of +15.3% [4] - U.S. Services revenue was $452.25 million, below the average estimate of $478.82 million, reflecting a year-over-year decline of -7.7% [4] - Revenue from outside the U.S. was $169.77 million, surpassing the estimated $141.43 million, with a year-over-year increase of +6% [4] Stock Performance - Maximus shares have returned -2.2% over the past month, while the Zacks S&P 500 composite increased by +2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]