MAXIMUS Lifts FY EPS View

(RTTNews) - MAXIMUS (MMS) said that it raised its fiscal 2018 earnings guidance and now expects GAAP earnings per share to range between $3.30 and $3.50 for fiscal 2018. This compares to the Company's prior guidance of $2.95 to $3.15.

MAXIMUS continues to expect revenue to range between $2.475 billion and $2.550 billion for fiscal 2018 with a bias toward the lower half of the range due to contracts that are ending in the U.S. Federal Services Segment, including temporary work in support of federal disaster relief efforts that came to an end earlier than expected.

Wall Street currently is looking for fiscal year 2018 earnings of $3.04 per share on annual revenues of $2.51 billion.

As a result of the benefits of tax reform in the U.S., the Company expects that its fiscal 2018 earnings will benefit by approximately $0.35 of diluted earnings per share and estimates its effective income tax rate for fiscal 2018 will range between 26% and 28%.

For the first quarter of fiscal 2018, revenue increased 3% to $623.1 million compared to $607.6 million reported for the same period last year. The increase was driven by revenue increases in the Health Services and Human Services Segments, including favorable foreign exchange movements, which offset expected revenue declines in the U.S. Federal Services Segment in the quarter. For the first quarter of fiscal 2018, net income attributable to MAXIMUS totaled $59.1 million or $0.89 of diluted earnings per share. This compared to fiscal 2017 first quarter diluted earnings per share of $0.71.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share and revenues of $626.22 million. Analysts' estimates typically exclude special items.