Government services provider Maximus (NYSE: MMS) will be announcing earnings results this Thursday morning. Here’s what investors should know.
Maximus missed analysts’ revenue expectations last quarter, reporting revenues of $1.35 billion, down 4.1% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is Maximus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Maximus’s revenue to decline 3.2% year on year, a deceleration from its flat revenue in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Maximus’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Jacobs Solutions delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 2%, and UL Solutions reported revenues up 7.5%, topping estimates by 1.2%.
Read our full analysis of Jacobs Solutions’s results here and UL Solutions’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 11% on average over the last month. Maximus is up 1.8% during the same time and is heading into earnings with an average analyst price target of $110 (compared to the current share price of $64.90).
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