Overview
Maximus Q4 revenue and adjusted EPS missed analyst expectations
Fiscal 2025 revenue grew 2.4% to $5.43 bln, driven by U.S. Federal Services Segment
Company repurchased 5.8 mln shares for $457 mln during fiscal year 2025
Outlook
Maximus expects fiscal 2026 revenue between $5.225 bln and $5.425 bln
Company anticipates fiscal 2026 adjusted EPS between $7.95 and $8.25
Maximus forecasts fiscal 2026 free cash flow between $450 mln and $500 mln
Result Drivers
U.S. FEDERAL SERVICES - Revenue growth driven by clinical program volume increases and natural disaster support
U.S. SERVICES DECLINE - Revenue decreased due to previous excess Medicaid volumes and severance charges
OUTSIDE U.S. SEGMENT - Revenue decline due to divestitures, offset by organic growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $1.32 bln | $1.34 bln (2 Analysts) |
Q4 Adjusted EPS | Miss | $1.62 | $1.67 (2 Analysts) |
Q4 Net Income | $75.29 mln | ||
Q4 Gross Profit | $333.55 mln | ||
Q4 Operating Income | $122.86 mln | ||
Q4 Pretax Profit | $100.47 mln |
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 is $105.00, about 25.9% above its November 19 closing price of $77.76
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw7q4K53a
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(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.)