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UPDATE 1-Maximus Q4 profit beats, sees weak 2011 revenue
November 11, 2010 / 12:53 PM / 7 years ago

UPDATE 1-Maximus Q4 profit beats, sees weak 2011 revenue

* Q4 adj. EPS $1.08 vs est $1.04

* Q4 rev $212.5 mln vs est $218.5 mln

* Sees FY11 adj. EPS $3.95-$4.15 vs est $3.99

* Sees FY11 rev $890-$920 mln vs est $924.5 mln

Nov 11 (Reuters) - Maximus Inc (MMS.N), which provides operations management and consulting services to the U.S. government, posted a better-than-expected quarterly profit, helped by a rise in its Australian and UK business, but forecast weak 2011 revenue.

Reston, Virginia-based Maximus sees full-year 2011 adjusted earnings of $3.95-$4.15 per share, on revenue of $890-$920 million.

Analysts on average were expecting Maximus to earn $3.99 per share, excluding items, on revenue of $924.5 million, according to Thomson Reuters I/B/E/S.

July-September earnings were 20.7 million, or $1.16 per share, compared to $8.6 million, or 80 cents a share, a year ago. Excluding items, Maximus earned $1.08 per share, compared with analysts’ expectations of $1.04 per share.

Revenue for Maximus, which competes with bigger rival Accenture Plc (ACN.N) and privately held Deloitte Consulting LLP in the business services industry, rose 9 percent to $212.5 million.

Revenue at the company’s human services segment, which provides administrative services for government programs, including Medicare and Medicaid, rose 28 percent to $83.5 million, while backlog rose 17 percent to $2.1 billion.

Maximus said growth in human services was mainly due to its employment services in Australia, which doubled its book of business, while in the United Kingdom it won new contracts in the quarter.

Shares of the company, which have risen 6 percent in value since it posted its second-quarter results on Aug. 5, closed at $62.35 on Wednesday on the New York Stock Exchange. (Reporting by Siddharth Cavale in Bangalore; Editing by Unnikrishnan Nair)

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