Maximus, Inc. (NYSE:MMS) shares are trading higher on Wednesday.
Today, the company announced that the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services (CMS) has withdrawn their early re-procurement of the Contact Center Operations (CCO) 1-800-MEDICARE and Federal Marketplace contract.
The early re-procurement of the contract would have otherwise caused Maximus to recompete for the same scope of work it currently performs under its contract today, the company said.
The current contract retains its available option periods until 2031.
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"We are pleased with this outcome and appreciate the opportunity to continue supporting HHS and CMS in their vital missions and look forward to delivering innovative, high-quality, and reliable solutions that benefit the American public," said Bruce Caswell, president and CEO of Maximus.
"Maximus employees have consistently demonstrated their ability to successfully manage this critical program providing essential support to more than 75 million eligible Americans who rely on Medicare and the Federal Marketplace," Caswell said.
For FY25, Maximus sees revenues between $5.275 billion and $5.425 billion (estimate: $5.297 billion). Adjusted diluted earnings per share, which excludes expense for amortization of intangible assets and divestiture-related charges, is expected to range between $5.70 and $6.00 per share (estimate: $5.07).
Price Action: MMS shares were up 0.5% to $73.34 at last check Wednesday.
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