We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Maximus (MMS) Stock Declines 3.6% Since Q3 Earnings Miss
Read MoreHide Full Article
Maximus, Inc.’s (MMS - Free Report) third-quarter fiscal 2023 earnings and revenues missed the Zacks Consensus Estimate.
The stock has declined 3.6% since the earnings release on Aug 2 in response to the lower-than-expected results and trimmed guidance.
Maximus currently expects adjusted earnings to be in the range of $3.74-$3.94 per share compared with the previous guidance of $4.00-$4.30 per share. The revised guided range is below the current Zacks Consensus Estimate of earnings of $4.1 per share.
Fiscal 2023 revenues are expected to be in the range of $4.875-$4.975 billion compared with the previous guidance of $4.85-$5 billion. The midpoint ($4.925 billion) is, however, slightly higher than the current Zacks Consensus Estimate of $4.91 billion.
Quarterly adjusted earnings of 78 cents per share missed the Zacks Consensus Estimate by 31.6% and remained flat year over year. Revenues of $1.19 billion lagged the consensus mark by 1.3% but increased 5.6% year over year.
Maximus shares have gained 24.8% over the past year compared with the 28.3% growth of the industry it belongs to.
The U.S. Services segment’s revenues of $449.1 million grew 12.5% year over year and beat our estimate of $434 million. The U.S. Federal Services segment’s revenues of $584 million increased 11.1% from the year-ago reported number and surpassed our estimate of $578.3 million. The Outside the U.S. segment’s revenues of $155.7 million decreased 22.5% year over year and lagged our estimate of $191.2 million.
Sales and Pipeline
Year-to-date signed contract awards, as of Jun 30, totaled $4.27 billion and contracts pending (awarded but unsigned) amounted to $3.1 billion. The sales pipeline as of Jun 30 was $32.1 billion. This included $2.6 billion in pending proposals, $0.84 billion in proposals in preparation and $28.7 billion in opportunities tracking.
The book-to-bill ratio as of Jun 30, 2023, was 2.2x. The book-to-bill ratio, excluding the Contact Center Operations contract of $6.6 billion received in September 2022, was 1.1x as of Jun 30, 2023.
Operating Performance
Adjusted operating income of $81.8 million increased 5.9% year over year. This compares with our expected adjusted operating income of $113.7 million, up 47.2% year over year.
Adjusted operating income margin of 6.9% remained flat year over year. This compares with our expected adjusted operating income margin of 9.4%, up 250 basis points year over year.
Balance Sheet and Cash Flow
Maximus ended the quarter with a cash and cash equivalents balance of $35 million compared with $56.3 million reported at the end of the prior quarter.
The company used $5.3 million in cash from operations. Capital expenditures were $25.1 million and free cash flow amounted to $30.4 million.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Maximus (MMS) Stock Declines 3.6% Since Q3 Earnings Miss
Maximus, Inc.’s (MMS - Free Report) third-quarter fiscal 2023 earnings and revenues missed the Zacks Consensus Estimate.
The stock has declined 3.6% since the earnings release on Aug 2 in response to the lower-than-expected results and trimmed guidance.
Maximus currently expects adjusted earnings to be in the range of $3.74-$3.94 per share compared with the previous guidance of $4.00-$4.30 per share. The revised guided range is below the current Zacks Consensus Estimate of earnings of $4.1 per share.
Fiscal 2023 revenues are expected to be in the range of $4.875-$4.975 billion compared with the previous guidance of $4.85-$5 billion. The midpoint ($4.925 billion) is, however, slightly higher than the current Zacks Consensus Estimate of $4.91 billion.
Quarterly adjusted earnings of 78 cents per share missed the Zacks Consensus Estimate by 31.6% and remained flat year over year. Revenues of $1.19 billion lagged the consensus mark by 1.3% but increased 5.6% year over year.
Maximus shares have gained 24.8% over the past year compared with the 28.3% growth of the industry it belongs to.
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 $449.1 million grew 12.5% year over year and beat our estimate of $434 million. The U.S. Federal Services segment’s revenues of $584 million increased 11.1% from the year-ago reported number and surpassed our estimate of $578.3 million. The Outside the U.S. segment’s revenues of $155.7 million decreased 22.5% year over year and lagged our estimate of $191.2 million.
Sales and Pipeline
Year-to-date signed contract awards, as of Jun 30, totaled $4.27 billion and contracts pending (awarded but unsigned) amounted to $3.1 billion. The sales pipeline as of Jun 30 was $32.1 billion. This included $2.6 billion in pending proposals, $0.84 billion in proposals in preparation and $28.7 billion in opportunities tracking.
The book-to-bill ratio as of Jun 30, 2023, was 2.2x. The book-to-bill ratio, excluding the Contact Center Operations contract of $6.6 billion received in September 2022, was 1.1x as of Jun 30, 2023.
Operating Performance
Adjusted operating income of $81.8 million increased 5.9% year over year. This compares with our expected adjusted operating income of $113.7 million, up 47.2% year over year.
Adjusted operating income margin of 6.9% remained flat year over year. This compares with our expected adjusted operating income margin of 9.4%, up 250 basis points year over year.
Balance Sheet and Cash Flow
Maximus ended the quarter with a cash and cash equivalents balance of $35 million compared with $56.3 million reported at the end of the prior quarter.
The company used $5.3 million in cash from operations. Capital expenditures were $25.1 million and free cash flow amounted to $30.4 million.
Currently, Maximus carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.