Maximus' Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

Maximus, Inc. MMS reported better-than-expected second-quarter fiscal 2025 results.Quarterly adjusted earnings of $2.01 per share beat the Zacks Consensus Estimate by 46.7% and increased 28% year over year. Revenues of $1.36 billion topped the consensus mark by 5.8% and rose 1% from the year-ago quarter.Maximus, Inc. Price, Consensus and EPS SurpriseMaximus, Inc. price-consensus-eps-surprise-chart | Maximus, Inc. QuoteSegmental Revenues of MaximusThe U.S. Federal Services segment’s revenues of $777.9 million rose 11% from the year-ago reported number and beat our estimate of $687.2 million. The Outside the U.S. segment’s revenues of $141.5 million decreased 12% year over year and outpaced our anticipated $123.1 million. The U.S. Services segment’s revenues of $442.4 million decreased 9% year over year and missed our estimate of $497.2 million.MMS’ Sales and PipelineYear-to-date signed contract awards, as of March 31, 2025, totaled $2.92 billion. Contracts pending (awarded but unsigned) amounted to $451 million. The sales pipeline, as of March 31, was $41.2 billion. This included $1.97 billion in pending proposals, $3 billion in proposals in preparation, and $36.3 billion in opportunities tracking. The book-to-bill ratio was 0.8X on a trailing 12-month basis. MMS’ Operating PerformanceOperating income of $153 million increased 20% year over year. This compares with our expected adjusted operating income of $138.6 million, down 16.2% year over year. The adjusted operating income margin of 11.2% increased 170 basis points year over year.Maximus’ Balance Sheet and Cash FlowMaximus ended the quarter with a cash and cash equivalent balance of $108 million compared with $73 million reported at the end of the prior quarter.The company generated $42.7 million in cash from operations. Capital expenditures were $17.2 million, and free cash flow amounted to $25.5 million.MMS Updated Fiscal 2025 GuidanceMaximus has raised earnings and revenue guidance for fiscal year 2025. Total revenues are now expected between $5.25 billion and $5.4 billion compared with the previous expectation of $5.2 billion and $5.35 billion. The midpoint ($5.325 billion) of the raised guided range is above the Zacks Consensus Estimate of $5.31 billion.Adjusted earnings are anticipated in the range of $6.30-$6.60 per share compared with the previous expectations of $5.90-$6.20 per share. The updated guided range is higher than the current Zacks Consensus Estimate of $6.08. The company expects an adjusted EBITDA margin of approximately 11.7% compared with 11.2% expected earlier.Free cash flow expectation stayed unchanged between $355 million and $385 million. The company forecasts interest expenses of approximately $78 million compared with the prior anticipation of $75 million. The effective income tax rate is anticipated to be within 28-29%. On a full-year basis, the weighted average shares outstanding are forecasted to be approximately 58 million shares.Currently, Maximus carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotS&P Global Inc. SPGI reported impressive first-quarter 2025 results. SPGI’s adjusted EPS of $4.37 surpassed the Zacks Consensus Estimate by 3.6% and gained 9% year over year. Revenues of $3.8 billion beat the consensus estimate by 2% and grew 8.3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Verisk VRSK has reported impressive first-quarter fiscal 2025 results. VRSK’s adjusted earnings were $1.73 per share, surpassing the Zacks Consensus Estimate by 3.6% and increasing 6.1% from the year-ago quarter. Total revenues of $753 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report Maximus, Inc. (MMS): Free Stock Analysis Report S&P Global Inc. (SPGI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks