MMS Earnings Prediction
The chart below shows how MMS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MMS sees a +1.76% change in stock price 10 days leading up to the earnings, and a +2.74% change 10 days following the report. On the earnings day itself, the stock moves by -1.10%. This data can give you a slight idea of what to expect for the next quarter's release.
MMS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.40B
5.70%
6.60%
Gross Margin
19.86%
-4.75%
-6.23%
Operating Margin
6.19%
-23.58%
-27.09%
Net Margin
2.94%
-39.13%
-46.64%
EPS
0.69
-33.65%
-41.53%
No Data Available
MMS Earnings Analysis
Maximus Inc Corporation (MMS.N) Earnings Conference Call
Positive
Q1 2025 Revenue Growth: Revenue of $1.40 billion for Q1 2025 represents a 5.7% year-over-year growth, with 6.3% organic growth driven primarily by the US Federal Services segment.
Federal Services Revenue Growth: US Federal Services segment revenue increased 15.3% to $781 million, with an operating income margin of 12.7%, up from 10.2% in the prior year period.
Strong Demand Indicators: Total signed awards in Q1 2025 amounted to $2.1 billion, resulting in a book-to-bill ratio of approximately 1.5 times, indicating strong demand and contract activity.
Share Repurchase Program Expansion: The Board of Directors authorized a $200 million increase to the share repurchase program, with approximately $290 million deployed in share repurchases since the fiscal year start.
Q1 Adjusted EPS Increase: Adjusted EPS for Q1 2025 was reported at $1.61, an increase from $1.34 in the prior year period, reflecting improved profitability and operational efficiency.
Negative
Earnings Per Share Shortfall: Maximus, Inc. reported an EPS of $0.69, significantly missing expectations of $1.39, indicating a substantial shortfall in profitability.
US Services Revenue Decline: The US Services segment experienced a revenue decline of 7.7% to $452 million, primarily due to the completion of the Medicaid unwinding exercise, which had previously inflated revenues.
Divestiture Charges Impact: Divestiture charges of approximately $38 million were incurred during the quarter, primarily due to foreign exchange losses, negatively impacting overall financial performance.
Negative Cash Flow Trends: Cash used in operating activities was $80 million, and free cash flow was an outflow of $103 million for the quarter, reflecting negative cash flow trends and operational inefficiencies.
Increased Leverage Concerns: The net debt to EBITDA ratio increased from 1.4 to 1.8 times, indicating a rise in leverage primarily due to increased share repurchase activity, which may raise concerns about financial stability.
MMS FAQs
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MMS Earning Call Sentiment
Maximus, Inc. (NYSE:MMS) Q1 2025 Earnings Call Transcript
MMS.N
-1.14%Positive
The earnings call summary reflects a positive sentiment with strong organic revenue growth, significant task orders, and a promising AI capabilities contract. Despite an EPS decline, adjusted EPS improved, and share repurchases were substantial. The Q&A section indicates confidence in guidance and minimal negative impact from the administration transition. However, concerns about cash flow and debt levels slightly temper the outlook. Overall, the market is likely to react positively to the strategic initiatives and share repurchase program.
