Maximus Inc (MMS) Reports Growth in Full Year Revenue and Record Contract Backlog
Full year revenue grew by 5.9% to $4.90 billion, with organic growth of 7.1%.
Adjusted diluted earnings per share for FY 2023 stood at $3.83, excluding cybersecurity incident impacts.
Record contract backlog reached $20.7 billion, signaling strong future revenue potential.
Maximus Inc (NYSE:MMS) establishes FY 2024 guidance anticipating continued organic growth.
On November 15, 2023, Maximus Inc (NYSE:MMS) released its 8-K filing, detailing the company's financial performance for the fourth quarter and the full fiscal year of 2023. The company reported a solid increase in full year revenue, which rose by 5.9% to $4.90 billion compared to the previous year, driven by organic growth across its U.S. segments. The fourth quarter also saw a 7.0% revenue increase, with organic growth accounting for 7.4% of this rise.
Financial Highlights and Segment Performance
Maximus Inc (NYSE:MMS) reported full year diluted earnings per share (EPS) of $2.63 and adjusted diluted EPS of $3.83. The adjusted figures exclude a cybersecurity incident, which, when factored out, would bring adjusted EPS to $4.18 for the full year and $1.38 for the fourth quarter. The U.S. Federal Services Segment saw a 6.4% revenue increase to $2.40 billion, with the U.S. Services Segment not far behind, boasting a 12.7% increase to $1.81 billion. However, the Outside the U.S. Segment experienced a 9.8% decrease in revenue, primarily due to currency headwinds and lower volumes on employment services contracts.
Operational Efficiency and Future Outlook
Despite the challenges, Maximus Inc (NYSE:MMS) maintained a healthy operating margin of 6.0% for FY 2023, with an adjusted operating margin of 8.0%. The company's balance sheet remains strong, with cash and cash equivalents totaling $65.4 million and a reduced debt ratio. Cash flows from operating activities were robust at $314.3 million for the year, and the company declared a quarterly cash dividend of $0.30 per share.
Looking ahead, Maximus Inc (NYSE:MMS) has set its fiscal year 2024 guidance with expected revenue between $5.05 billion and $5.2 billion, and adjusted operating income projected between $488 million and $513 million. The company anticipates organic growth of approximately 5% over fiscal year 2023, with a focus on maintaining strong operating margins and cash flow.
Investor and Analyst Confidence
Bruce Caswell, President and CEO of Maximus Inc (NYSE:MMS), expressed confidence in the company's outlook, citing the resilience of their business model even amidst potential U.S. federal government shutdown scenarios. "We are proud of the team for an excellent finish to the year and demonstrating a healthy core business operating at its true potential," Caswell remarked. He also emphasized the company's strong visibility towards guidance targets for the upcoming fiscal year.
Maximus Inc (NYSE:MMS) will host a conference call on November 16, 2023, to discuss the earnings report in greater detail and answer shareholder questions. The company's strategic focus on tech-enabled services for government programs and its robust contract backlog position it well for sustained growth and profitability.
For more detailed information on Maximus Inc (NYSE:MMS)'s financial results, including the full income statement, balance sheet, and cash flow statement, investors are encouraged to review the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Maximus Inc for further details.
This article first appeared on GuruFocus.
