Benzinga | May 6, 2021 06:49AM EDT

Maximus Sees FY21 Adj. EPS $4.20-$4.40 vs $3.65 Est., Sales $4.0B-$4.2B vs $3.63B Est.

For the second consecutive quarter, Maximus is increasing revenue, earnings, and cash flow guidance for fiscal 2021 following recent awards, scope increases, and contract extensions related to COVID-19 response work. The Company anticipates fiscal 2021 revenue will range between $4.0 billion and $4.2 billion and diluted earnings per share will range between $4.20 and $4.40 per share including the impact of the two recently announced acquisitions.

For fiscal 2021, cash from operations is expected to range between $400 million and $450 million and free cash flow between $360 million and $410 million. The effective tax rate is expected to range between 26% and 27% and weighted average shares outstanding to range between 62.2 million and 62.3 million.

Revenue attributable to COVID-19 response work is anticipated to range between $800 million and $850 million for fiscal 2021. The COVID-19 response work is expected to diminish over time, resulting in a lower fourth quarter as compared to the third quarter. The fourth quarter is further impacted by the planned startup losses in the Outside the U.S. Segment. The VES acquisition is assumed to be slightly dilutive to the Company's fiscal 2021 diluted earnings per share.