HMS Holdings Corp. (HMSY) Tops Q1 EPS by 7c, Revenues Beat

HMS Holdings Corp. (NASDAQ: HMSY) reported Q1 EPS of $0.32, $0.07 better than the analyst estimate of $0.25. Revenue for the quarter came in at $171.4 million versus the consensus estimate of $162.32 million.

• 1Q'20 Total Revenue of $171.4 Million, (+15.9%) vs. 1Q'19
• 1Q'20 Net income of $12.7 Million vs. $19.6 Million in 1Q'19
• 1Q'20 EPS of $0.14 Per Diluted Share vs. $0.22 per Diluted Share in 1Q'19
• 1Q'20 Adjusted EPS of $0.32 Per Diluted Share vs. $0.28 per Diluted Share in 1Q'19 excluding discrete tax benefits
• 1Q'20 Adjusted EBITDA of $47.1 Million, (+15.0%) vs. 1Q'19

“HMS delivered solid top-line growth with first quarter revenue increasing 15.9% compared with the same period last year, driven by strong organic growth of 8.5% plus a full quarter of the Accent business acquired at the end of 2019,” said Bill Lucia, Chairman and CEO. “Net income declined 35.4% year-over year in the quarter, due primarily to Accent-related integration costs this year and discrete tax benefits in the first quarter of 2019. Adjusted EBITDA increased 15.0% and cash and cash equivalents topped $148 million at quarter end. With healthy cash flows and low leverage, HMS continues to be well positioned to invest in our talent, technology and product development to support our business growth and clients' needs.

"Given the circumstances surrounding COVID-19 and its broad impact on our nation and the world, the entire HMS organization moved swiftly to enact our business continuity plan to ensure we remained fully operational. By the end of March, essentially 100% of our employees were working from home with the necessary tools to accomplish their day-to-day work in a secure environment to support clients,” Lucia added. "We also implemented several measures to address organizational agility, client support and health and safety, including helping employees avoid exposure to the novel coronavirus and care for their families.

"First and foremost, we are working diligently to protect our employees and business operations, and help clients actively communicate at scale with millions of individuals. Given the challenges currently facing the healthcare system, we believe strong cost containment and clinical outcome capabilities are going to be more important than ever when this health crisis subsides," Lucia concluded.

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

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