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Maximus fiscal 4Q profit climbs nearly 51 pct

The Associated Press

NEWS: Maximus Inc.'s fiscal fourth quarter earnings jumped nearly 51 percent, as the government services provider booked a revenue gain due in part to the health care overhaul.

DETAILS: The Reston, Va., company said Friday revenue from its health services segment jumped 49 percent to $271 million due to new work that included contracts to support the Affordable Care Act, the federal law known as the overhaul that aims to eventually cover millions of uninsured people. The expansion of existing programs and an acquisition also helped results.

Maximus operates government health and human services programs in the United States, the United Kingdom, Canada, Australia and Saudi Arabia.

NUMBERS: Overall, the company earned $35.6 million, or 51 cents per share, in the quarter that ended Sept. 30. That compares with earnings of $23.7 million, or 34 cents per share, in the previous year.

Total revenue climbed 28 percent to $384.3 million.

Analysts expected, on average, earnings of 50 cents per share on $358.6 million in revenue, according to FactSet.

FUTURE: Maximus forecasts fiscal 2014 earnings to range between $1.75 and $1.85 per share on about $1.55 billion to $1.6 billion in revenue.

Analysts predict earnings of $1.85 per share on $1.61 billion in revenue.

STOCK: Down 96 cents, or 2 percent, to $45.97 in Friday morning trading. The shares had climbed about 49 percent so far this year, as of Thursday.