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 ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [3] - The Momentum Score identifies trends in stock prices or earnings outlooks, helping investors time their positions based on recent price changes [4] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [5] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [8] - Stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face downward price pressure due to negative earnings outlooks [9] Company Spotlight: Maximus - Maximus, headquartered in Reston, VA, operates globally in government health and human services, employing over 39,600 individuals [10] - Currently rated 3 (Hold) on the Zacks Rank, Maximus has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 0.6% over the past four weeks [10][11] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.20 to $5.99 per share, with an average earnings surprise of 9.8% [11]

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 ...