Maximus Raises Earnings Guidance Despite Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 30 2024
0mins
Should l Buy MMS?
Source: WSJ
Maximus Inc's stock fell 5.09% as it crossed below the 5-day SMA, reflecting market reactions to its recent earnings report.
The company reported a first-quarter revenue of $1.35 billion for fiscal year 2026, a 4.1% decrease from the prior year. However, diluted earnings per share rose to $1.70 from $0.69, indicating strong performance in government services. Maximus raised its fiscal year 2026 revenue guidance to between $5.2 billion and $5.35 billion, while also increasing its adjusted diluted earnings per share forecast to a range of $8.05 to $8.35, reflecting confidence in future performance despite the revenue decline.
This mixed performance suggests that while revenue is under pressure, the company's ability to manage costs and maintain profitability is encouraging. The raised guidance may help restore investor confidence, but the stock's current decline indicates market caution amid broader trends.
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Analyst Views on MMS
About MMS
Maximus, Inc. is an operator of government health and human services programs and provider of technology solutions to governments. The Company operates through three segments: U.S. Services, U.S. Federal Services, and Outside the U.S. The U.S. Services segment provides a variety of business process services (BPS), such as program administration, appeals and assessments, and related consulting work for United States state and local government programs. The U.S. Federal Services segment delivers end-to-end solutions that help various United States federal government agencies, including program operations and management, clinical services, and technology solutions. The Outside the U.S. segment provides BPS for international governments and commercial clients. The services of this segment include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. It also delivers services in the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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