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Maximus (MMS) Stock Gains 3% Since Q2 Earnings Beat Estimates
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Maximus, Inc. (MMS - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
The stock increased 2.7% since the earnings release on May 8 in response to the better-than-expected results and raised guidance for fiscal 2024.
For fiscal 2024, the company expects revenues of $5.15-$5.25 billion compared with the $5.05-$5.2 billion mentioned previously. The mid-point ($5.2 billion) of the raised guidance is higher than the Zacks Consensus Estimate of $5.19 billion.
Maximus expects adjusted earnings to be $5.65-$5.85 per share compared with the $5.2-$5.5 per share stated previously. The mid-point ($5.75) of the revised guided range is greater than the Zacks Consensus Estimate of earnings of $5.69 per share.
Quarterly adjusted earnings of $1.57 per share beat the Zacks Consensus Estimate by 19.9% and increased 96.3% on a year-over-year basis. Revenues of $1.35 billion beat the consensus mark by 5.4% and rose 11.7% from the year-ago quarter.
The company’s shares have gained 3.8% in the past three months, outperforming the 3.2% rally of the industry it belongs to.
The U.S. Services segment’s revenues of $486.1 million increased 8.1% year over year and surpassed our estimate of $475.2 million. The U.S. Federal Services segment’s revenues of $701.7 million rose 20.1% from the year-ago reported number and beat our estimate of $626 million. The Outside the U.S. segment’s revenues of $160.5 million decreased 7.2% year over year and missed our estimated $170.5 million.
Sales & Pipeline
Year-to-date signed contract awards, as of Mar 31, totaled $568 million and contracts pending (awarded but unsigned) amounted to $797 million. The sales pipeline, as of Mar 31, was $37.8 billion. This included $1.3 billion in pending proposals, $987 billion in proposals in preparation and $35.5 billion in opportunities tracking. The book-to-bill ratio as of Mar 31, 2023, was 1.1X.
Operating Performance
Adjusted operating income of $149.1 million increased 71.3% from the year-ago quarter’s actual. This compares with our estimate of $121.2 million. The adjusted operating income margin of 11.2% increased 390 basis points year over year, surpassing our estimate of 9.5%.
Balance Sheet & Cash Flow
Maximus ended the quarter with a cash and cash equivalents balance of $77.4 million compared with the $104.2 million reported at the end of first-quarter fiscal 2024.
The company utilized $108.8 million in cash from operations. Capital expenditure was $3.1 million and the adjusted free cash flow amounted to $105.8 million.
Other Guidance
For fiscal 2024, the free cash flow is now anticipated between $330 million and $370 million compared with the $300-$350 million mentioned previously. Maximus expects interest expenses of $77 million compared with the $73 million stated earlier.
ICFI’s quarterly adjusted earnings per share of $1.77 beat the Zacks Consensus Estimate by 22.9% and rose 24.7% from the year-ago reported figure. Total revenues of $494.4 million beat the Zacks Consensus Estimate by a slight margin but increased 2.3% year over year.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
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Maximus (MMS) Stock Gains 3% Since Q2 Earnings Beat Estimates
Maximus, Inc. (MMS - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
The stock increased 2.7% since the earnings release on May 8 in response to the better-than-expected results and raised guidance for fiscal 2024.
For fiscal 2024, the company expects revenues of $5.15-$5.25 billion compared with the $5.05-$5.2 billion mentioned previously. The mid-point ($5.2 billion) of the raised guidance is higher than the Zacks Consensus Estimate of $5.19 billion.
Maximus expects adjusted earnings to be $5.65-$5.85 per share compared with the $5.2-$5.5 per share stated previously. The mid-point ($5.75) of the revised guided range is greater than the Zacks Consensus Estimate of earnings of $5.69 per share.
Quarterly adjusted earnings of $1.57 per share beat the Zacks Consensus Estimate by 19.9% and increased 96.3% on a year-over-year basis. Revenues of $1.35 billion beat the consensus mark by 5.4% and rose 11.7% from the year-ago quarter.
The company’s shares have gained 3.8% in the past three months, outperforming the 3.2% rally of the industry it belongs to.
Maximus, Inc. Price and EPS Surprise
Maximus, Inc. price-eps-surprise | Maximus, Inc. Quote
Segmental Revenues
The U.S. Services segment’s revenues of $486.1 million increased 8.1% year over year and surpassed our estimate of $475.2 million. The U.S. Federal Services segment’s revenues of $701.7 million rose 20.1% from the year-ago reported number and beat our estimate of $626 million. The Outside the U.S. segment’s revenues of $160.5 million decreased 7.2% year over year and missed our estimated $170.5 million.
Sales & Pipeline
Year-to-date signed contract awards, as of Mar 31, totaled $568 million and contracts pending (awarded but unsigned) amounted to $797 million. The sales pipeline, as of Mar 31, was $37.8 billion. This included $1.3 billion in pending proposals, $987 billion in proposals in preparation and $35.5 billion in opportunities tracking. The book-to-bill ratio as of Mar 31, 2023, was 1.1X.
Operating Performance
Adjusted operating income of $149.1 million increased 71.3% from the year-ago quarter’s actual. This compares with our estimate of $121.2 million. The adjusted operating income margin of 11.2% increased 390 basis points year over year, surpassing our estimate of 9.5%.
Balance Sheet & Cash Flow
Maximus ended the quarter with a cash and cash equivalents balance of $77.4 million compared with the $104.2 million reported at the end of first-quarter fiscal 2024.
The company utilized $108.8 million in cash from operations. Capital expenditure was $3.1 million and the adjusted free cash flow amounted to $105.8 million.
Other Guidance
For fiscal 2024, the free cash flow is now anticipated between $330 million and $370 million compared with the $300-$350 million mentioned previously. Maximus expects interest expenses of $77 million compared with the $73 million stated earlier.
Currently, Maximus carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
ICF International, Inc. (ICFI - Free Report) reported impressive first-quarter 2024 results.
ICFI’s quarterly adjusted earnings per share of $1.77 beat the Zacks Consensus Estimate by 22.9% and rose 24.7% from the year-ago reported figure. Total revenues of $494.4 million beat the Zacks Consensus Estimate by a slight margin but increased 2.3% year over year.
Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.