TYSONS, Va. - Maximus (NYSE: NYSE:MMS), a prominent provider of government services, has been selected for a Blanket Purchase Agreement (BPA) with the Internal Revenue Service (IRS) to offer Non-IT Consulting Services. The BPA, which has a combined ceiling of $300 million, spans five years and positions Maximus to bid on various task orders.
The BPA focuses on enhancing the taxpayer experience by offering services such as Strategic Planning, Business Process Improvement, and Program Integration Support within the Taxpayer Services Organization. Maximus aims to create operational strategies that support the IRS's long-term goals while maintaining the agency's core mission and principles.
Tricia Belman, Managing Director of Federal Financial at Maximus, highlighted the company's extensive history with the IRS, stating, "We've worked with the IRS across a wide range of modernization and IT projects focused on improving how the public interacts with the agency." The new contract enables Maximus to further assist the IRS in refining its business operations and elevating the taxpayer experience.
Maximus and the IRS have maintained a longstanding partnership, and this BPA is expected to enhance their collaborative efforts to address the IRS's modernization requirements and service improvements. Larry Reagan, Senior Managing Director at Maximus, emphasized the company's dedication to supporting the IRS's mission and reinforcing public trust.
The information in this article is based on a press release statement. Maximus, known for its global government service solutions, continues to leverage its expertise in program service delivery and technology to meet the evolving needs of public service programs.
In other recent news, Maximus has reported a year-over-year revenue increase of 10.6% to $1.31 billion in Q3 of the fiscal year 2024, primarily driven by a 17.0% revenue increase in the U.S. Federal Services segment. The company's adjusted operating income margin stood at 12.6% with an adjusted EPS of $1.74. Maximus has raised its full-year guidance for FY2024, with revenue expected to range between $5.25 billion and $5.35 billion, adjusted operating income between $570 million and $590 million, and adjusted EPS between $6 and $6.20 per share.
Maximus has also secured several significant contracts recently. The company won a $40 million contract from the Internal Revenue Service to enhance the agency's Enterprise Data Platform. In Pennsylvania, Maximus secured a $263 million contract to improve the application and enrollment process for residents seeking home and community-based services. The company was also awarded a $20 million contract to operate as the Contact Center Services Provider for the Office of Personnel Management's new Postal Service Health Benefits Program.
These recent developments reflect Maximus's commitment to providing government services globally and its ability to secure significant contracts. The company's revenue growth and raised guidance for FY2024 signal positive financial performance, while the recent contracts highlight its ongoing contribution to improving public services.
InvestingPro Insights
Maximus's recent selection for the IRS Blanket Purchase Agreement aligns well with the company's strong financial position and growth prospects. According to InvestingPro data, Maximus boasts a market capitalization of $5.42 billion and has demonstrated solid revenue growth, with a 10.62% increase in quarterly revenue as of Q3 2024. This growth trajectory supports the company's ability to take on significant contracts like the $300 million IRS agreement.
InvestingPro Tips highlight Maximus's financial strength and potential for investors. The company has maintained dividend payments for 20 consecutive years, indicating a commitment to shareholder returns. This is particularly relevant given the new IRS contract, which could contribute to sustained revenue and potentially support future dividend growth.
Additionally, Maximus operates with a moderate level of debt and has liquid assets exceeding short-term obligations. These factors suggest the company is well-positioned to fulfill the requirements of the IRS contract without straining its financial resources.
For investors interested in Maximus's growth potential, InvestingPro Tips reveal that net income is expected to grow this year, and the company is trading at a low P/E ratio relative to near-term earnings growth. With a P/E ratio of 18.7 and a PEG ratio of 0.26, Maximus appears attractively valued considering its growth prospects.
InvestingPro offers 10 additional tips for Maximus, providing investors with a comprehensive view of the company's financial health and market position. To access these insights and more detailed analysis, consider exploring the full range of InvestingPro's offerings.
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