Government services provider Maximus (NYSE: MMS) will be reporting earnings tomorrow morning. Here’s what to expect.
Maximus beat analysts’ revenue expectations by 8.8% last quarter, reporting revenues of $1.40 billion, up 5.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
Is Maximus a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Maximus’s revenue to decline 4% year on year to $1.29 billion, a reversal from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Maximus has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Maximus’s peers in the government & technical consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. UL Solutions delivered year-on-year revenue growth of 5.2%, meeting analysts’ expectations, and NV5 Global reported revenues up 10.1%, topping estimates by 2.4%. NV5 Global traded up 1.5% following the results.
Read our full analysis of UL Solutions’s results here and NV5 Global’s results here.
There has been positive sentiment among investors in the government & technical consulting segment, with share prices up 14.2% on average over the last month. Maximus is up 1.4% during the same time and is heading into earnings with an average analyst price target of $102 (compared to the current share price of $66.47).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
