Why Maximus Shares Are Trading Sharply Higher

Maximus Inc MMS shares are trading higher by 13.91% to $68.96 during Tuesday's session after the company reported better-than-expected fourth-quarter EPS and sales results. The company also issued FY23 EPS and sales guidance above analyst estimates.

What Happened?

Maximus reported quarterly earnings of $1.40 per share which beat the analyst consensus estimate of $0.69. The company reported quarterly sales of $1.18 billion which beat the analyst consensus estimate of $1.12 billion by 5%. This is a 6% increase over sales of $1.11 billion in the same period last year.

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Maximus is also establishing fiscal year 2023 guidance- the company expects revenue to range between $4.75 billion and $4.90 billion. Adjusted operating income is expected to range between $390 million and $415 million which excludes an estimated $94 million of expense for amortization of intangible assets. Adjusted diluted earnings per share is expected to range between $3.70 and $4.00 per share.

"Our fiscal year 2022 results provide us confidence that the foundation we laid for the core business is yielding the desired outcome. There were record signed contract awards and the backlog of business is at an all-time high," said Bruce Caswell, President and Chief Executive Officer.

"Expansion of core work and new business wins that take full advantage of our capabilities more than replaced the anticipated decline in short-term work."

According to data from Benzinga Pro, MMS has a 52-week high of $81.98 and a 52-week low of $54.46.