Maximus, Inc. (NYSE:MMS) Fiscal Fourth-Quarter Performance Review

• Maximus reported an EPS of $1.46, slightly missing the Zacks estimated $1.49 but showing a 13.2% increase year-over-year.
• The company's revenue reached $1.32 billion, exceeding estimates and marking a 4.4% increase from the previous year.
• Maximus maintains a P/E ratio of 14.82 and a low debt-to-equity ratio of 0.05, indicating financial stability and conservative debt management.

Maximus, Inc. (NYSE:MMS) is a key player in the government services industry, providing a range of services to federal, state, and local governments. The company focuses on health and human services programs, offering solutions that improve public health and welfare. Maximus competes with other government service providers, striving to deliver efficient and effective solutions.

On November 20, 2024, Maximus reported its fourth-quarter fiscal results, revealing an earnings per share (EPS) of $1.46. This figure fell slightly short of the estimated $1.49, as highlighted by Zacks. Despite this, the EPS showed a 13.2% increase from the previous year, indicating a positive trend in earnings growth.

Maximus generated revenue of $1.32 billion, surpassing the estimated $1.31 billion. This revenue marks a 4.4% increase from the previous year, showcasing the company's ability to grow its top line. The U.S. Federal Services segment contributed significantly, with revenues of $675 million, a 9.4% increase from the previous year.

The Outside the U.S. segment also performed well, with revenues of $177.2 million, a 5% increase from the previous year. This exceeded the anticipated $154.4 million, highlighting the company's strong international presence. However, the U.S. Services segment experienced a slight decline, with revenues of $463.6 million, down 2.2% year-over-year.

Maximus maintains a price-to-earnings (P/E) ratio of approximately 14.82, reflecting its market valuation relative to earnings. The company's price-to-sales ratio is about 0.85, indicating its market value compared to sales. With a low debt-to-equity ratio of 0.05, Maximus demonstrates a conservative approach to debt, ensuring financial stability.