Yahoo Finance Here's What Analysts Are Forecasting For MAXIMUS, Inc. After Its First-Quarter Results
It's been a good week for MAXIMUS, Inc. (NYSE:MMS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.3% to US$74.55. It was a workmanlike result, with revenues of US$818m coming in 2.6% ahead of expectations, and statutory earnings per share of US$0.91, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Check out our latest analysis for MAXIMUS
Taking into account the latest results, the current consensus from MAXIMUS's seven analysts is for revenues of US$3.23b in 2020, which would reflect a reasonable 6.2% increase on its sales over the past 12 months. Statutory earnings per share are expected to increase 6.3% to US$4.02. In the lead-up to this report, analysts had been modelling revenues of US$3.22b and earnings per share (EPS) of US$4.02 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$79.67. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic MAXIMUS analyst has a price target of US$82.00 per share, while the most pessimistic values it at US$76.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
It can also be useful to step back and take a broader view of how analyst forecasts compare to MAXIMUS's performance in recent years. We can infer from the latest estimates that analysts are expecting a continuation of MAXIMUS's historical trends, as next year's forecast 6.2% revenue growth is roughly in line with 7.4% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that MAXIMUS is expected to grow slower than similar companies in the same market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MAXIMUS analysts - going out to 2021, and you can see them free on our platform here.
You can also see our analysis of MAXIMUS's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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