HMS Holdings Corp. (HMSY) Misses Q4 EPS by 4c, Revenues Miss; Offers FY20 Revenue Guidance Above Consensus

HMS Holdings Corp. (NASDAQ: HMSY) reported Q4 EPS of $0.27, $0.04 worse than the analyst estimate of $0.31. Revenue for the quarter came in at $163.4 million versus the consensus estimate of $170.79 million.

“HMS posted solid revenue and profit growth in full year 2019, with revenue increasing 4.7%, net income rising 58.5% and adjusted EBITDA increasing 10.6% from the prior year, along with record operating cash flow performance,” said Bill Lucia, Chairman and CEO. “While our business can experience quarterly variability, on an annual basis we continue to experience top and bottom line growth driven by our product innovation, application of new technologies and expansion within both current and new clients.

“We expect our growth in 2020 will be fueled by investments in sales talent, technology, data analytics and product development as well as the strategic acquisitions completed last year as we deliver increasing value to our expanding client base this year and in the future,” Lucia concluded.

GUIDANCE:

HMS Holdings Corp. sees FY2020 revenue of $705-715 million, versus the consensus of $701.56 million.

Key assumptions underlying the Company's full year 2020 financial guidance include:

• Depreciation and amortization of approximately $51 million
• Stock-based compensation expense of approximately $23 million
• Net interest expense of approximately $6 million
• An effective tax rate of 28-30%
• Capital expenditures of approximately $30-35 million

For earnings history and earnings-related data on HMS Holdings Corp. (HMSY) click here.

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