MAXIMUS, Inc. (MMS) shares are soaring after the latest earnings news, which included revised guidance.
Company Description
MAXIMUS provides government services around the world, specializing in health and human services. The company has more than 200 offices in North America, Australia, the UK and Israel.
Revenue Up 19%
MAXIMUS reported first quarter results for fiscal 2010 on Feb 4 that showed a 19% increase in revenue, to just over $200 million. Earnings per share came in at a record 83 cents, up from 69 cents last year.
The EPS number came in 19 cents ahead of expectations, making it the fourth consecutive earnings surprise for MAXIMUS. Management also went on to raise their outlook for full-year 2010.
Estimates Spike
Following the earnings release, analysts raised full-year estimates. The Zacks Consensus Estimate for fiscal 2010 is now $3.41, up from $3.10. Forecasts for next year are averaging $3.71, up 21 cents.
These levels represent year-over-year growth of 17% and 9%, respectively.
New Deals
On Feb 12 MAXIMUS acquired DeltaWare, which focuses on administration management systems in government health care. The specifics of the deal were not disclosed.
Just yesterday, Medicare and Medicaid extended their current deals with MAXIMUS. The agreement could be valued as high at $29.3 million.
The Chart
The market took a liking, to say the least, to the quarterly news, as shares surged to new highs. Despite the rapid appreciation, shares remain a good value at 15 times forward earnings.
Zacks Growth Trader serviceZacks Investment Research