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MAXIMUS (MMS) Stock Up 20% Since Q4 Earnings & Revenue Beat
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MAXIMUS, Inc. (MMS - Free Report) reported impressive fourth-quarter fiscal 2022 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has surged 20.1% since the earnings released on Nov 21 in response to strong revenue guidance for fiscal 2023. MAXIMUS expects fiscal 2023 revenues to be in the range of $4.75-$4.90 billion. The midpoint of the guided range ($4.825 billion) is above the current Zacks Consensus Estimate of $4.79 billion.
Quarterly adjusted earnings (excluding 27 cents from non-recurring items) of $1.40 per share beat the Zacks Consensus Estimate by 37.3% and increased 29.6% year over year. Revenues of $1.18 billion also beat the consensus mark by 7.9% and increased 6.4% year over year.
The U.S. Services segment’s revenues of $423.8 million rise 7.9% year over year. The U.S. Federal Services segment’s revenues of $579 million increased 7.2% from the year-ago reported quarter. Outside the U.S. segment revenues of $174.2 million increased marginally year over year.
Sales and Pipeline
Year-to-date signed contract awards on Sep 30, totaled $10.5 billion, and contracts pending (awarded but unsigned) amounted to $800.1 million. The sales pipeline on Sep 30 was $30.7 billion. This included $3.4 billion in pending proposals, $3.1 billion in proposals in preparation and $24.2 billion in opportunities tracking.
Operating Performance
Operating income of $114.5 million surged 67.9% year over year. The operating income margin of 9.7% was higher than the year-ago quarter’s 6.2%.
Balance Sheet and Cash Flow
MAXIMUS ended the quarter with cash and cash equivalents of $40.7 million compared with $93.7 million in the prior quarter.
The company generated $120.1 million of cash from operations. Capital expenditures were $20.2 million. Free cash flow amounted to $99.9 million.
2023 Outlook
Adjusted earnings per share are expected to be in the range of $3.70 and $4.00 per share. The midpoint of the guided range ($3.85) is below the current Zacks Consensus Estimate of $3.90 per share.
Free cash flow is anticipated in the range of $225-$275 million. Interest expenses are expected to be between $85 million and $95 million. The effective tax rate is anticipated in the range of 24.5-25.5%. Weighted average shares outstanding are projected in the range of 61.2-61.3 million. MAXIMUS currently carries a Zacks Rank #4 (Sell).
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been constant over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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MAXIMUS (MMS) Stock Up 20% Since Q4 Earnings & Revenue Beat
MAXIMUS, Inc. (MMS - Free Report) reported impressive fourth-quarter fiscal 2022 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has surged 20.1% since the earnings released on Nov 21 in response to strong revenue guidance for fiscal 2023. MAXIMUS expects fiscal 2023 revenues to be in the range of $4.75-$4.90 billion. The midpoint of the guided range ($4.825 billion) is above the current Zacks Consensus Estimate of $4.79 billion.
Quarterly adjusted earnings (excluding 27 cents from non-recurring items) of $1.40 per share beat the Zacks Consensus Estimate by 37.3% and increased 29.6% year over year. Revenues of $1.18 billion also beat the consensus mark by 7.9% and increased 6.4% year over year.
Maximus, Inc. Price, Consensus and EPS Surprise
Maximus, Inc. price-consensus-eps-surprise-chart | Maximus, Inc. Quote
Segmental Revenues
The U.S. Services segment’s revenues of $423.8 million rise 7.9% year over year. The U.S. Federal Services segment’s revenues of $579 million increased 7.2% from the year-ago reported quarter. Outside the U.S. segment revenues of $174.2 million increased marginally year over year.
Sales and Pipeline
Year-to-date signed contract awards on Sep 30, totaled $10.5 billion, and contracts pending (awarded but unsigned) amounted to $800.1 million. The sales pipeline on Sep 30 was $30.7 billion. This included $3.4 billion in pending proposals, $3.1 billion in proposals in preparation and $24.2 billion in opportunities tracking.
Operating Performance
Operating income of $114.5 million surged 67.9% year over year. The operating income margin of 9.7% was higher than the year-ago quarter’s 6.2%.
Balance Sheet and Cash Flow
MAXIMUS ended the quarter with cash and cash equivalents of $40.7 million compared with $93.7 million in the prior quarter.
The company generated $120.1 million of cash from operations. Capital expenditures were $20.2 million. Free cash flow amounted to $99.9 million.
2023 Outlook
Adjusted earnings per share are expected to be in the range of $3.70 and $4.00 per share. The midpoint of the guided range ($3.85) is below the current Zacks Consensus Estimate of $3.90 per share.
Free cash flow is anticipated in the range of $225-$275 million. Interest expenses are expected to be between $85 million and $95 million. The effective tax rate is anticipated in the range of 24.5-25.5%. Weighted average shares outstanding are projected in the range of 61.2-61.3 million. MAXIMUS currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been constant over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.