Overview

* Maximus ( MMS ) fiscal Q3 revenue rises 2.5% to $1.35 bln, beating analyst estimates

* Adjusted EPS for fiscal Q3 increases to $2.16, up from $1.74 last year

* Company raises FY25 guidance for revenue, earnings, and free cash flow

Outlook

* Maximus ( MMS ) raises FY25 revenue guidance to $5.375 bln-$5.475 bln

* Company expects FY25 adjusted EPS between $7.35 and $7.55

* Maximus ( MMS ) anticipates FY25 adjusted EBITDA margin of approximately 13%

* Company increases FY25 free cash flow guidance to $370 mln-$390 mln

Result Drivers

* FEDERAL SERVICES - Revenue increased 11.4% due to elevated volumes in clinical programs

* MEDICAID IMPACT - U.S. Services Segment revenue decreased 6.9% due to prior year's excess Medicaid-related activities

* DIVESTITURES - Outside the U.S. Segment revenue decreased due to divestitures, offset by 7.3% organic growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.35 $1.29

Revenue bln bln (2

Analysts

)

Q2 Net $105.98

Income mln

Q2 Gross $359.51

Profit mln

Q2 $165.67

Operatin mln

g Income

Q2 $142.97

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Maximus Inc ( MMS ) is $103.00, about 27.3% above its August 6 closing price of $74.87

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)