Maximus, Inc. (MMS) reported mixed fourth-quarter fiscal 2024 results. Earnings marginally missed the Zacks Consensus Estimate, but revenues beat the Zacks Consensus Estimate.Quarterly adjusted earnings of $1.46 per share marginally lagged the Zacks Consensus Estimate but increased 13.2% on a year-over-year basis. Revenues of $1.32 billion beat the consensus mark by 1.8% and rose 4.4% from the year-ago quarter.Segmental Revenues of MaximusThe U.S. Federal Services segment’s revenues of $675 million rose 9.4 ...

Maximus (MMS) came out with quarterly earnings of $1.46 per share, missing the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.68%. A quarter ago, it was expected that this government health services provider would post earnings of $1.47 per share when it actually produced earnings of $1.74, delivering a surprise of 18.37%.Over the last four qua ...

Revenue and Growth - Full year revenue increased 8.2% to $5.31 billion, with organic growth of 8.8% driven by higher volumes in key U.S. programs[2] - U.S. Federal Services Segment revenue increased 13.9% to $2.74 billion, all organic growth driven by clinical program volume[8] - U.S. Services Segment revenue increased 5.5% to $1.91 billion, with strong performance across the Medicaid-related portfolio[10] - Outside the U.S. Segment revenue decreased 4.6% to $657.1 million, impacted by prior-year divestitures[12] - Revenue for the three months ended September 30, 2024, was $1,315,870, an increase of 4.4% from $1,259,953 in 2023[35] - Revenue for 2024 reached $1,315,870, an increase from $1,259,953 in 2023, representing a growth of approximately 4.4%[42] - U.S. Federal Services revenue increased to $675,117 in 2024 from $617,404 in 2023, a growth of approximately 9.3%[42] Earnings and Profitability - Full year diluted earnings per share were $4.99, and adjusted diluted earnings per share were $6.11, compared to $2.63 and $3.83 for the prior year[6] - Net income for the year ended September 30, 2024, reached $306,914, compared to $161,792 in 2023, representing an increase of 89.5%[35] - Basic earnings per share for the three months ended September 30, 2024, was $1.20, up from $0.97 in 2023, reflecting a growth of 23.7%[35] - Operating income for the year ended September 30, 2024, was $488,499, compared to $294,794 in 2023, marking a 65.7% increase[35] - Gross profit for 2024 was $301,695, with a gross margin of 22.9%, compared to $290,894 and a margin of 23.1% in 2023[42] - Operating income for 2024 was $111,756, reflecting an operating margin of 8.5%, up from $99,124 and 7.9% in 2023[48] - Net income for 2024 was $72,504, an increase from $59,146 in 2023, representing a growth of approximately 22.6%[49] - Diluted earnings per share for 2024 were $1.19, compared to $0.96 in 2023, marking an increase of approximately 24.0%[49] Cash Flow and Financial Position - Cash flows from operating activities totaled $515 million, and free cash flow was $401 million, compared to $314 million and $224 million in the prior year[19] - Cash flows from operating activities for the year ended September 30, 2024, were $515,258, compared to $314,340 in 2023, an increase of 64.1%[40] - Free cash flow for fiscal year 2025 is expected to range between $345 million and $375 million[23] - Free cash flow for 2024 was $131,881, compared to $112,757 in 2023, indicating a growth of approximately 16.9%[46] - Cash and cash equivalents increased to $183,123 in 2024 from $65,405 in 2023, showing a significant rise of 179.5%[38] - Total assets as of September 30, 2024, were $4,131,508, an increase from $3,985,797 in 2023, indicating a growth of 3.7%[38] - Total liabilities decreased to $2,288,693 in 2024 from $2,317,962 in 2023, a reduction of 1.3%[38] Future Outlook - The sales pipeline at September 30, 2024, was $54.3 billion, with new work opportunities representing approximately 48% of the total[15] - Backlog at September 30, 2024, was estimated to be $16.2 billion, down from $20.7 billion at the same point in the prior year[16] - Fiscal year 2025 revenue guidance is expected to range between $5.275 billion and $5.425 billion, with an adjusted EBITDA margin of approximately 11.0%[22] - The company plans to continue focusing on market expansion and new product development to drive future growth[43] Expenses and Amortization - The company reported a decrease in amortization of intangible assets to $91,570 for the year ended September 30, 2024, down from $94,591 in 2023[35] - The company reported a decrease in selling, general, and administrative expenses as a percentage of revenue, from 13.3% in 2023 to 12.7% in 2024[42] Dividends - Dividends declared per share increased to $0.30 in 2024 from $0.28 in 2023, representing a growth of 7.1%[35]

Core Insights - Wall Street analysts forecast that Maximus (MMS) will report quarterly earnings of $1.47 per share, reflecting a year-over-year increase of 14% [1] - Anticipated revenues for the quarter are projected to be $1.29 billion, showing a 2.6% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1] Revenue Estimates - The consensus estimate for 'Revenue- U.S. Federal Services' is $661.00 million, representing a year-over-year change of +7.1% [4] - Analysts project 'Revenue- U.S. Services' to reach $473.37 million, indicating a slight decline of -0.1% from the prior-year quarter [4] - The average prediction for 'Revenue- Outside the U.S' is $158.65 million, reflecting a year-over-year decrease of -6% [4] Stock Performance - Maximus shares have experienced a decline of -9.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of +1.6% [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Maximus, Inc. (MMS) shares have had an impressive run in the past six months. The stock has rallied 11% compared with the 8.7% growth of its industry and the 9.3% increase of the Zacks S&P 500 composite. This rally aligns with the performance of its business services competitors, Booz Allen Hamilton (BAH) , which has gained 7.9%, and Genpact (G) , which has rallied 18.2% over the same period. The stock closed at $92.69 in its last trading session, close to its 52-week high of $93.97, and traded above its 50 ...

Maximus, Inc. (MMS) benefits from its strong relationship with governments, allowing the company to generate recurring revenues from long-term contracts. MMS' strong cash flow and ability to borrow a hefty credit to meet working capital requirements provide a competitive edge. However, it is witnessing declining net income due to rising operating expenses and non-recurring costs. MMS reported impressive third-quarter fiscal 2024 results. Quarterly adjusted earnings of $1.7 per share beat the Zacks Consensus ...

Core Viewpoint - Maximus, Inc. is identified as a potentially undervalued investment opportunity, with a strong business model and growth prospects despite being lesser-known in the market [1][2]. Company Background - Maximus is a provider of government health and human services programs, primarily operating in the U.S. with three reportable segments: U.S. Federal Services, U.S. Services, and Outside the U.S. [4] - The company generates nearly $5 billion in annual revenue and has a market capitalization of $5.3 billion [4]. Recent Earnings Results - Maximus reported third-quarter earnings with revenue growth of 10.1% to $1.31 billion, exceeding estimates by $20 million [6]. - Adjusted earnings-per-share were $1.74, significantly higher than the previous year's $1.04 and beating expectations by $0.22 [6]. - The U.S. Federal Services segment saw a revenue increase of 17% to $683.3 million, representing 52% of total sales [6]. - The company raised its full fiscal year guidance for adjusted earnings-per-share to a range of $6.00 to $6.20, indicating a 59% increase from FY 2023 [7]. Growth and Margin Analysis - Maximus has achieved consistent revenue growth, with a compound annual growth rate (CAGR) of nearly 12% over the past decade, except for 2018 [8]. - The operating margin improved to 10.8%, up from 4.9% in Q3 2023, with U.S. Federal Services expanding its margin to 15.5% [8]. - The company signed contracts worth $1.25 billion year-to-date, with a book-to-bill ratio of 0.6, down from 1.1 in the previous quarter [8]. Future Growth Potential - Maximus estimates a total addressable market of approximately $34 billion, with pending proposals of $2.9 billion and $7.3 billion in preparation [9]. - The company anticipates operating margins of 12.5% and 13% for its U.S. Federal Services and U.S. Services segments, respectively, for FY 2024 [9]. Dividend Analysis - Maximus has distributed dividends for 18 consecutive years, with a CAGR of nearly 23% over the last decade, although recent growth has been lower at less than 4% per year [10]. - The expected earnings payout ratio for FY 2024 is 20%, indicating a well-covered dividend [10]. Valuation and Return Potential - Shares of Maximus are trading at 14.3 times expected adjusted earnings-per-share, below the sector median of 18.8 [11]. - The company is projected to achieve total returns exceeding 10% per year, combining earnings growth, dividend yield, and potential multiple expansion [12]. Final Thoughts - Maximus is experiencing growth in key business areas, with a high renewal rate for contracts, which positions the company for margin improvements [14]. - The current market valuation does not reflect the improving business model, presenting a potential investment opportunity [14][15].

It has been about a month since the last earnings report for Maximus (MMS) . Shares have added about 2.2% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Maximus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Maximus Beats Q3 Earnings Estimates Maximus reported ...

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Maximus, Inc. (MMS) reported impressive third-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.7 per share beat the Zacks Consensus Estimate by 18.4% and increased more than 100% on a year-over-year basis. Revenues of $1.3 billion beat the consensus mark by 3% and rose 10.6% from the year-ago quarter. Segmental Revenues The U.S. Federal Services segment's revenues of $683.3 million rose 17% from the year-ago reported number an ...