Maximus, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Maximus, Inc. (NYSE:MMS) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.2% to hit US$1.4b. Maximus also reported a statutory profit of US$1.69, which was an impressive 55% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 2 warning signs about Maximus. View them for free.

Taking into account the latest results, Maximus' two analysts currently expect revenues in 2025 to be US$5.37b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 15% to US$4.54 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$5.30b and earnings per share (EPS) of US$4.30 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Maximus

The consensus price target was unchanged at US$103, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2025. This indicates a significant reduction from annual growth of 9.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Maximus is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Maximus following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$103, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Maximus you should be aware of.

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This 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.