MAXIMUS Cuts 2016 Revenue Outlook

(RTTNews) - MAXIMUS (MMS), a provider of government services worldwide, updated its fiscal 2016 revenue and earnings guidance. MAXIMUS estimates an unfavorable revenue impact from foreign currency translation due to the weakening of the British Pound with the greatest impact occurring in the fourth quarter. In addition, the Company has already disclosed lower revenue contributions from three of its start-up contracts including the Health Assessment Advisory Service (HAAS), Fit for Work and jobactive contracts.

As a result, MAXIMUS now expects revenue to range between $2.375 billion and $2.4 billion for fiscal 2016. This compared to the Company's prior range of $2.4 billion to $2.5 billion.

MAXIMUS narrowed its earnings guidance and now expects GAAP earnings per share to range between $2.60 and $2.70 for fiscal 2016. This compared to the Company's prior range of $2.50 to $2.70 of GAAP earnings per share.

Analysts polled by Thomson Reuters expect the company to report earnings of $2.62 per share and revenues of $2.43 billion for fiscal year 2016. Analysts' estimates typically exclude special items.