Maximus' Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

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$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$687.2 million [2] - Outside the U.S. segment revenues increased to $169.8 million, a 6$123.1 million [2] - U.S. Services segment revenues decreased to $452.3 million, down 7.7$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$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]