Maximus has reported financial results for the three months ended December 31, 2020, the company announced on Friday. The report found that revenue increased 15.6 percent to $945.6 million as compared to $818.2 million reported for the prior-year period.
"Maximus is at the forefront of providing government much needed support in their efforts to control the spread and address the challenges of the global pandemic," said Bruce Caswell, president and chief executive officer of Maximus and 2021 Wash100 Award recipient.
The revenue increase was driven by new COVID-19 response work, including contact tracing, disease investigation, vaccination support, unemployment insurance program support and other key priorities.
"Recently, we expanded our pandemic-response work with new contracts supporting vaccination administration efforts. We are proud that our customers rely on our proven agility and scalability in providing effective business process services under compressed timelines,” Caswell added.
Maximus’ operating income margin was 9.3 percent and diluted earnings per share were $1.03. The company’s results for the quarter were ahead of consensus estimates, and in line with its expectations. The outlook for fiscal 2021 has improved, driven by recent awards, scope increases, and contract extensions.
In addition, the company will raise revenue and earnings guidance for fiscal 2021 with revenue expected to range between $3.400 billion and $3.525 billion and diluted earnings per share to range between $3.55 and $3.75 per share. A quarterly cash dividend of $0.28 for each share of our common stock outstanding payable on February 26, 2021, to shareholders of record on February 12, 2021.
“As the new administration launches many initiatives, Maximus is uniquely positioned to further leverage our core capabilities in response to President Biden's commitment to public health, social welfare, and affordable healthcare,” Caswell concluded.
Caswell recently spoke with ExecutiveBiz regarding how the company has responded to the COVID-19 pandemic, such as enhancing workforce support, developing new technologies and supporting employment services. Additionally, Caswell discussed investments in new technologies, as well as where Maximus will head in 2021.
ExecutiveBiz: What are your expectations and future plans for Maximus to continue its growth in new markets within the U.S. federal market and overseas?
“I’m very proud of the progress we’ve made in the last nine years, including growing our federal business from about $90 million to about $1.4 billion over that time. We’d like to continue to expand in the federal marketplace, especially within technology and helping our customers solve more complicated challenges with advanced technologies.