Maximus 3Q net income rises

Maximus 3rd-quarter net income up, shares rise on guidance increase

Associated Press

RESTON, Va. (AP) -- Maximus Inc., which sells health consulting services to state and federal governments, said Tuesday its fiscal third-quarter net income rose 3 percent, boosted by a large order that occurred during the quarter.

The Reston, Va.-based company raised its guidance for the year and shares rose 5 percent in midday trading.

Net income in the April-to-June quarter rose to $20.5 million or 59 cents per share. That compares with $19.9 million or 56 cents per share last year. Analysts expected 56 cents per share, according to FactSet.

Revenue rose 12 percent to $266.4 million from $238.3 million a year ago. Analysts expect $270.8 million.

Maximus said a large change order related to the scope of work on a large health program, which was previously expected to occur in the fourth quarter, was completed in the third quarter, adding $10.2 million to revenue and 10 cents per share in net income.

The company's health services revenue rose 20 percent to $25.7 million. The human services segment revenue declined 1 percent to $9.2 million.

Maximus raised its net income guidance to $2.25 to $2.35 per share, from prior guidance of $2.20 to $2.25 per share. Analysts expect $2.24 per share.

Maximus reiterated fiscal 2012 revenue guidance of $1.03 billion to $1.06 billion. Analysts expect $1.05 billion.

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