【will boiling water kill goutweed】Why Is Maximus (MMS) Down 12.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Maximus (MMS). Shares have lost about 12.8% in that time frame,will boiling water kill goutweed underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Maximus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MAXIMUS Q1 Earnings Meet Estimates
MAXIMUS reported first-quarter fiscal 2020 earnings per share of 91 cents, which matched the Zacks Consensus Estimate and increased 5.8% year over year.
Revenues of $818.2 million beat the consensus mark by 1.7% and improved 23.1% year over year. The year-over-year uptick was driven by strength in the U.S. Federal Services Segment due to contribution from the acquired citizen engagement centers business, the ramp-up on the Census contract, and organic growth in the company’s U.S. Health & Human Services and U.S. Federal Services Segments.
Revenues by Segment
U.S. Health and Human Services segment revenues of $312.3 million increased 6.2% year over year mainly driven by new contracts and expansion of existing work. U.S. Federal Services segment revenues of $366.6 million were up 68.9% from the year-ago quarter. Outside the U.S. segment revenues of $139.4 million declined 9% year over year on a reported basis and 8% on a constant-currency basis.
Sales and Pipeline
Year to date signed contract awards at Dec 31, 2019 totaled $176.6 million and contracts pending (awarded but unsigned) totaled $439.5 million. The sales pipeline at Dec 31, 2019 was $30.6 billion. This included $3.7 billion in proposals pending, $0.7 billion in proposals in preparation and $26.3 billion in opportunities tracking.
Operating Performance
Operation income of $79.1 million increased 6.7% year over year. Operating margin of 9.7% declined 150 basis points (bps).
Balance Sheet and Cash Flow
The company ended the quarter with cash and cash equivalents balance of $149.5 million compared with $105.6 million in the prior quarter. The company generated $87.3 million of cash from operations and capital expenditure was $10.5 million. Free cash flow was $76.8 million. MAXIMUS paid out dividends of $18 million in the quarter.
Outlook
The company reiterated its fiscal 2020 guidance. Earnings per share are expected to be in the range of $3.95 to $4.15. The company expects revenues of $3.15-$3.3 billion. Cash flows from operations are expected to be between $300 million and $350 million, and free cash flow is anticipated between $275 million and $325 million. Estimated effective income tax rate is between 24.5% and 25.5%.
Story continues
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -10.82% due to these changes.
VGM Scores
At this time, Maximus has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Maximus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want 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
Maximus, Inc. (MMS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
View comments
下一篇:Comtech Augments Tactical Communications With COMET Launch
相关文章:
- Asia-Pacific Shares Settle Higher as China Factory Activity Expands Beyond Expectations
- 'No need to panic,' China official says of coronavirus variants
- Weight Watchers posts dynamite earnings, and the stock is soaring
- Are You the Right Investor for U.S. Oil and Gas Royalty Trusts? In Depth Analysis of Expectations for Future Cash Flows Before an Investment Decision Is Required
- Endurance International (EIGI) Q3 Earnings and Revenues Surpass Estimates
- Here’s What Emperor Capital Group Limited’s (HKG:717) P/E Ratio Is Telling Us
- Taiga Optionee Reports 2018 Q4 Drill Results from Fisher Gold Project, Northern Saskatchewan
- What To Know Before Buying Premier Financial Bancorp, Inc. (NASDAQ:PFBI) For Its Dividend
- Why Uranium Markets Are Gaining Interest
- Should Jazz Pharmaceuticals plc (NASDAQ:JAZZ) Be Your Next Stock Pick?
相关推荐:
- What Does Success Look Like for a Climate Czar?
- Before You Buy Ardagh Group S.A. (NYSE:ARD), Consider Its Volatility
- N.Korea wanted most sanctions lifted in exchange for partial Yongbyon closure -U.S. official
- Taking A Look At Cteh Inc.’s (HKG:1620) ROE
- Business owners contend with threat, reality of coronavirus
- Why We Like Herbalife Nutrition Ltd.’s (NYSE:HLF) 37% Return On Capital Employed
- India unveils budget aimed at wooing countryside before election
- Will Hi-P International Limited’s (SGX:H17) Earnings Grow In The Next Couple Of Years?
- Romios Completes 2020 Field Work in the Golden Triangle, Identifies Strong Alteration Zones at Recent Copper-Gold Discoveries on its TREK SOUTH and ANDREI EAST Porphyry Targets
- Don't Sell Air Canada (TSE:AC) Before You Read This
- The Global Cloud Encryption Software Market is expected to grow by $ 2.82 bn during 2020-2024 progressing at a CAGR of 38% during the forecast period
- Cheap oil prices likely to reduce inflationary pressures in India: government adviser
- 35 Surprising Cities With Low Costs of Living
- Why Uranium Markets Are Gaining Interest
- Evotec to Attend Upcoming Investor Conferences
- EyePoint Pharmaceuticals (EYPT) Reports Q4 Loss, Tops Revenue Estimates
- AstraZeneca to Ensure Equal Access to Coronavirus Vaccine
- Is Sirius International Insurance (SG) A Good Stock To Buy Now?
- UPDATE 1-MSCI to quadruple weighting of China A-shares in its global benchmarks
- Moving Average Crossover Alert: GoDaddy