MAXIMUS Lowers FY18 Guidance - Quick Facts

(RTTNews) - MAXIMUS (MMS) announced the company now expects revenue to range between $2.400 billion and $2.440 billion for fiscal 2018. This compares to the previous revenue guidance of $2.475 billion and $2.550 billion. MAXIMUS has revised its guidance because it has not booked sufficient new in-year awards.

As a result of the lowered revenue, MAXIMUS narrowed fiscal 2018 earnings guidance and now expects GAAP earnings per share to range between $3.30 and $3.40 for fiscal 2018. This compares to the previous earnings guidance of $3.30 to $3.50.

For the second quarter of fiscal 2018, revenue decreased 1% to $612.8 million compared to $622.0 million reported for the same period last year. The company said the decrease was due to the expected revenue decline in the U.S. Federal Services Segment from contracts that ended. For the second quarter of fiscal 2018, net income attributable to MAXIMUS totaled $55.5 million or $0.84 per share. Diluted earnings per share for the second quarter benefited by $0.02 from the lower provision for income taxes due to a revision to the estimate of the one-time benefit for the reduction in deferred income taxes, resulting from the new tax reform law. This compares to fiscal 2017 second quarter earnings per share of $0.80.