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 ...

| --- | --- | |--------------------------------------|-------| | | | | | | | | | | | | | Fiscal 2024 | | | Third Quarter | | | Earnings Call | | | David Mutryn Chief Financial Officer | | | August 8, 2024 | | 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 n ...

For the quarter ended June 2024, Maximus (MMS) reported revenue of $1.31 billion, up 10.6% over the same period last year. EPS came in at $1.74, compared to $0.78 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.28 billion, representing a surprise of +3.02%. The company delivered an EPS surprise of +18.37%, with the consensus EPS estimate being $1.47. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Maximus (MMS) came out with quarterly earnings of $1.74 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 18.37%. A quarter ago, it was expected that this government health services provider would post earnings of $1.31 per share when it actually produced earnings of $1.57, delivering a surprise of 19.85%. Over the last four qu ...

Wall Street analysts forecast that Maximus (MMS) will report quarterly earnings of $1.47 per share in its upcoming release, pointing to a year-over-year increase of 88.5%. It is anticipated that revenues will amount to $1.28 billion, exhibiting an increase of 7.4% compared to the year-ago quarter. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this ...