HMS Holdings Corp.

HMS Holdings Corp. (HMSY - Snapshot Report) just announced a record-breaking quarter and estimates are on the rise. Analysts are forecasting 25% earnings growth for the next 2 years.

Company Description

HMS Holdings Corp. provides payment services for government-sponsored programs in the U.S. The company helps provides coordinate benefits, contain costs, and route claims.

HMS also offers an independent review of medical related issues such as quality of care and others at government and private facilities. The company is headquartered in New York City and carries a market cap of almost $800 million.

EPS Up 73%

On Feb 20 HMS announced full-year 2008 and fourth-quarter results that included a 26% increase in quarterly revenue, $52.4 million up from $41.7 million. This yielded net income of $7.1 million, or 26 cents per share, a 73% increase from the same period in 2007.

In the press release Chairman and CEO Robert Holster said "HMS is reporting another year of record revenue growth and profitability, and expects continuing strong performance given the expansion of the government healthcare programs we serve."

Estimates Rising

When the company announced its previously mentioned results, it also raised its guidance and analysts were soon to follow. The full-year consensus for 2009 is now $1.00 and the estimate for next year is $1.25.

These projections are calling for 25% earnings growth in each of the next 2 years.

The Chart

After a slight reduction in earnings, analyst estimates are back on the rise. Each colored line below represents the full-year consensus estimate and you can see they are headed in the right direction.