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Bear Of The Day: Maximus (MMS)

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Maximus (MMS - Free Report) is a Zacks Rank #5 (Strong Sell) but it sports some solid style score grades.  Let's take a look a the most recent quarter and the earnings estimates.  Those will tell us why it is a Zacks Rank #5 (Strong Sell) and how it became the Bear Of The Day.


MAXIMUS, Inc. is an extremely dynamic and complex organization that offers government and industry a range of unique services, products, and solutions. The diverse services and products that MAXIMUS offers may be categorized into three groups: Government Program Management and Operations, Consulting, and Systems. Government Program Management and Operations focuses on having a measurable impact on the lives of the citizens we help government serve. The insights of MAXIMUS Consulting, and the technological innovations advanced through Systems, help government gain program efficiencies and pursue improvements that in turn benefit citizens.

Recent Earnings

MMS reported on May 10 and posted $0.84 in EPS.  That was $0.02 below the consensus estimate for the quarter.  Revenue of $612M were also below the $618M estimate and represented a decrease of 1.5% from the previous year levels.

The company lowered guidance for FY18 EPS, moving to $3.30-$3.40 from $3.30-$3.40 as compared to the consensus estimate at the time of $3.49. The revenue range was also lowered and came in below where the consensus estimate stood.

Earnings Estimates

Following the miss and weaker guidance, estimates came in.  The 2018  Zacks Consensus Estimate moved from $3.42 to $3.37.  Included in that move was a 3 cent move lower in the current quarter estimate and a 5 cent decrease for the next quarter.

The 2019 Zacks Consensus Estimate also slipped from $3.74 to $3.54.  That is the primary reason the stock is the Bear of the Day and a Zacks Rank #5 (Strong Sell).

Good Style Scores

Despite the bad news, the company still sports solid style scores with an A for growth and a B for value.  To me, that is reason enough to keep this stock on your radar screen.


Maximus, Inc. Price and Consensus

Maximus, Inc. Price and Consensus | Maximus, Inc. Quote

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