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Maximus (MMS) to Report Q1 Earnings: What's in the Cards?

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Maximus, Inc. (MMS - Free Report) is set to report first-quarter fiscal 2021 results on Feb 4, before the bell.

The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the last four quarters, matched the same in one and missed estimates in another. It has a trailing four-quarter earnings surprise of 0.5%, on average.

Maximus, Inc. Price and EPS Surprise

 

Maximus, Inc. Price and EPS Surprise

Maximus, Inc. price-eps-surprise | Maximus, Inc. Quote

 

Q1 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $868 million, which indicates a 6.1% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by strength in U.S. Services and Outside the U.S segments.

The U.S. Services segment is likely to have benefited from expansion of existing contracts and new work. The Zacks Consensus Estimate for the segment is pegged at $376 million, which indicates 20.5% growth from the year-ago quarter’s reported figure.

The consensus estimate for Outside the U.S. segment is at $148 million, which indicates 6.5% growth from the previous-year quarter’s reported figure. Growth is expected to have been driven by volume increases on Employment Services contracts and new work coming online. The bottom line in the to-be-reported quarter is expected to have been driven by operating strength. The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at 94 cents per share, which indicates 3.3% increase from the year-ago quarter’s reported figure.

What Our Model Says

Our proven model does not predict an earnings beat for Maximus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Maximus has an Earnings ESP of 0.00% and currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Omnicom (OMC - Free Report) , with an Earnings ESP of +1.23% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv (APTV - Free Report) has an Earnings ESP of +2.92% and a Zacks Rank #2.

Equifax (EFX - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank of 3.

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