Latest news with #MaximusInc
Yahoo
10-07-2025
- Business
- Yahoo
Maximus Enhances Government Customer Experience Solution with New AWS AI Integrations
Maximus Inc. (NYSE:MMS) is one of the most promising stocks according to Wall Street analysts. On June 9, Maximus announced the latest version of its Total Experience Management/TXM solution, which is now enhanced with new Amazon Web Services/AWS integrations. Maximus TXM was originally launched in 2024 and is designed to help government agencies deliver services more efficiently by providing a FedRAMP-authorized solution for next-gen customer experience/CX. Through its collaboration with AWS, Maximus TXM uses a range of AWS services, such as Amazon Bedrock, Amazon Lex, and Amazon Textract. These functionalities enable Maximus to help governments achieve mission outcomes and derive valuable insights. Maximus TXM is built on a cloud-based, modular, flexible, and scalable architecture. This allows agencies to customize the solution to their specific needs. A customer service representative standing by a computer screen in the contact center. It's already in use by several federal agencies, such as the Office of Personnel Management. For instance, at the Department of Veterans Affairs/VA, through Maximus company Veterans Evaluation Services/VES, they co-developed a proprietary AI-powered system for intelligent document processing. The system transformed a manual claims review process into a fast, scalable digital operation, and is now also being used to improve outcomes for the Centers for Medicare & Medicaid Services/CMS. Maximus Inc. (NYSE:MMS) provides government services worldwide. It operates through 3 segments: US Federal Services, US Services, and Outside the US. While we acknowledge the potential of MMS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
11-05-2025
- Business
- Yahoo
Maximus (NYSE:MMS) Has Announced A Dividend Of $0.30
Maximus, Inc. (NYSE:MMS) has announced that it will pay a dividend of $0.30 per share on the 31st of May. This means that the annual payment will be 1.6% of the current stock price, which is in line with the average for the industry. Our free stock report includes 2 warning signs investors should be aware of before investing in Maximus. Read for free now. Solid dividend yields are great, but they only really help us if the payment is sustainable. Before making this announcement, Maximus was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business. The next year is set to see EPS grow by 9.0%. Assuming the dividend continues along recent trends, we think the payout ratio could be 25% by next year, which is in a pretty sustainable range. View our latest analysis for Maximus Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the annual payment back then was $0.18, compared to the most recent full-year payment of $1.20. This implies that the company grew its distributions at a yearly rate of about 21% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time. Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Maximus has been growing its earnings per share at 10% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 2 warning signs for Maximus that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
09-05-2025
- Business
- Yahoo
Maximus Inc (MMS) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Maximus Inc (NYSE:MMS) reported a solid 3% organic revenue growth year over year, reaching $1.36 billion in Q2. The company achieved an adjusted EBITDA margin of 13.7%, which is at the upper end of their guidance range. Maximus Inc (NYSE:MMS) successfully implemented AI solutions to enhance efficiency in federal contracts, such as the Federal No Surprises Act and the Department of Veterans Affairs. The company secured new contracts in the clinical assessment space, including a $40 million contract in Kansas and a $150 million contract in California. Maximus Inc (NYSE:MMS) was recognized by Fortune as one of America's most innovative companies, highlighting their advancements in AI and automation. The company is experiencing delays in federal procurement processes, particularly in civilian agencies, which could impact future contract awards. Revenue from the US services segment decreased due to the completion of the Medicaid unwinding exercise, reflecting a normalization of revenue. Cash flow was lighter this quarter due to temporary delays in collections, leading to higher days sales outstanding (DSO). Maximus Inc (NYSE:MMS) is facing requests for pricing concessions on certain contracts, reflecting increased scrutiny from the federal government. The company maintains a cautious outlook for the second half of the fiscal year due to potential macroeconomic uncertainties and evolving government spending priorities. Warning! GuruFocus has detected 2 Warning Signs with MMS. Q: How should we think about the guidance for the back half of the year, and the weightings between Q3 and Q4? A: David Meutron, CFO: Our guidance reflects the Q2 overperformance and maintains guidance for Q3 and Q4. We anticipate a natural step down from Q2 due to moderation in clinical volumes and less seasonal work. We have no reliance on new work contributing to this fiscal year, and our cautious approach accommodates potential headwinds from the macro environment. Q: Can you provide more color on the exceptional margin performance this quarter? A: Bruce Caswell, President and CEO: The strong margin performance is due to high volumes and investments in technology, such as automation, which have increased productivity. This has allowed us to scale up operations and redirect staff to higher-value functions, demonstrating the effectiveness of our Maximus Forward transformation initiatives. Q: Are you seeing any potential delays in new work due to federal scrutiny, and are there new opportunities in the pipeline? A: Bruce Caswell, President and CEO: While there are some delays in civilian agency procurements, we are seeing a healthy pipeline with a 25% increase in proposals. The administration's efforts to consolidate contracts may lead to bridges and extensions benefiting incumbents. We are also exploring opportunities for efficiencies and innovation in existing contracts. Q: Can you provide additional color on the drivers behind the organic growth in the outside the US segment? A: David Meutron, CFO: The organic growth is primarily driven by our operations in the UK, particularly the functional assessment services contract. This contract provides a modest revenue increase compared to its predecessor and is a key driver of growth in the segment. Q: How are you managing the potential impact of pricing concessions and scrutiny from the federal government? A: Bruce Caswell, President and CEO: We are engaging in mutual negotiations for pricing concessions and are prepared for potential requests due to the administration's review of government spending. We maintain a balanced stance to support our customers and explore opportunities for efficiencies and innovation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-02-2025
- Business
- Yahoo
Maximus Inc (MMS) Q1 2025 Earnings Call Highlights: Strong Federal Services Growth Amidst ...
Revenue: $1.40 billion for Q1 FY2025, representing 5.7% year-over-year growth. Adjusted EBITDA Margin: 11.2% for the quarter. Adjusted EPS: $1.61 for the quarter. US Federal Services Revenue: $781 million, a 15.3% increase, all organic. US Federal Services Operating Margin: 12.7% for the quarter. US Services Revenue: $452 million, a 7.7% decrease. US Services Operating Margin: 9.0% for the quarter. Outside the US Revenue: $170 million, a 6.0% increase. Outside the US Operating Margin: 4.8% for the quarter. Free Cash Flow: Outflow of $103 million for the quarter. Share Repurchases: Approximately 3.1 million shares for $237 million during the quarter. Total Debt: $1.40 billion with a net debt to EBITDA ratio of 1.8 times. Updated Revenue Guidance for FY2025: $5.2 billion to $5.35 billion. Updated Adjusted EPS Guidance for FY2025: $5.90 to $6.20 per share. Updated Free Cash Flow Guidance for FY2025: $355 to $385 million. Warning! GuruFocus has detected 2 Warning Signs with MMS. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Maximus Inc (NYSE:MMS) reported strong first quarter results with a 5.7% year-over-year revenue growth, primarily driven by the US federal services segment. The company successfully secured favorable outcomes on two key rebids, including the CMS contact center operations and VA medical disability examination contracts. Maximus Inc (NYSE:MMS) completed the divestiture of its employment services businesses in Australia and South Korea, reducing volatility and improving profitability in the outside the US segment. The board of directors authorized an increase of $200 million to the share repurchase program, with $290 million deployed in share repurchases during the quarter. The company has a healthy pipeline of sales opportunities, with a total value of $41.4 billion, and is focusing on technology modernization and cost-effective program administration. The US services segment experienced a 7.7% revenue decrease, attributed to tough year-over-year comparisons and seasonality impacts. The outside the US segment incurred divestiture charges of about $38 million, primarily due to foreign exchange losses related to Australia. The company's net debt to EBITDA ratio increased from 1.4 to 1.8 times, primarily due to increased share repurchase activity. Maximus Inc (NYSE:MMS) faces potential risks from policy changes and procurement timing, with less than 2% of FY25 revenue coming from new work. The company's tax rate guidance increased slightly, with the first quarter rate impacted by non-tax deductible divestiture-related charges. Q: Bruce Caswell, can you discuss the strength in Q1 and whether there was any pull forward in performance? A: David Mutryn explained that the Q1 overperformance was not a pull forward but rather a result of strong execution. The full-year guidance has been adjusted to reflect this, with a $0.20 increase in earnings guidance. The company maintains a cautious approach, with less than 2% of revenue coming from new work. Q: Can you talk about your confidence in the guidance and any potential risks? A: David Mutryn stated that confidence remains high, and the company is careful not to lean forward too much in its guidance. The new business assumption is conservative, with less than 2% of revenue from anticipated pipeline conversions, ensuring good visibility. Q: How is the new administration affecting your portfolio, particularly in areas not tied to durable programs? A: Bruce Caswell noted that any potential impacts would be in small pockets. The company has reviewed its portfolio and believes that core functions will continue even if there are structural changes at the department level. The deal flow remains normal, similar to previous presidential transitions. Q: Can you elaborate on the Medicaid and state-based exchanges relationship and what you've observed over the last 12 months? A: Bruce Caswell highlighted that there has been a significant increase in health plan selections during open enrollment, indicating a transition from Medicaid to exchanges. Maximus operates state-based exchanges, allowing them to capture this transition. The policy environment remains fluid, with potential changes affecting enrollments. Q: What is the outlook for the veteran assessment business, and how does the new contract renewal impact it? A: Bruce Caswell and David Mutryn explained that the claims inventory has stabilized, and the company expects steady to modest growth in volumes. The focus remains on improving the veteran experience and handling volumes efficiently, with significant technology investments planned. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
