HMS Holdings Corp. (HMSY) Reports In-Line Q3 EPS, Revenues Miss; Offers FY20 Revenue Mid-Point Guidance Above Consensus

HMS Holdings Corp. (NASDAQ: HMSY) reported Q3 EPS of $0.30, in-line with the analyst estimate of $0.30. Revenue for the quarter came in at $165.2 million versus the consensus estimate of $171.79 million.

• 3Q'20 Total Revenue of $165.2 Million, (+12.5%) vs. 3Q'19
• 3Q'20 Net income of $18.0 Million vs. $21.1 Million in 3Q'19
• 3Q'20 GAAP EPS (Earnings Per Diluted Share) of $0.20 vs. $0.24 in 3Q'19
• 3Q'20 Adjusted EPS (Earnings Per Diluted Share) of $0.30 vs. $0.25 in 3Q'19 (excluding 3Q'19 Gain on Investment)
• 3Q'20 Adjusted EBITDA of $43.8 Million, (+33.5%) vs. 3Q'19 (excluding 3Q'19 Gain on Investment)

“HMS experienced a solid rebound in top-line growth with third quarter revenue increasing 15.8% sequentially from the second quarter and rising 12.5% -- and 5.2% on an organic basis -- when compared with the same quarter last year. This is a testament to our organizational agility and our ability to continue to deliver strong client value to meet the industry's evolving needs,” said Bill Lucia, Chairman and CEO. “Our resilient business has significant financial strength and continues to generate robust cash flows.

“We remain well positioned for strong performance in the fourth quarter and into 2021 as we believe strong cost containment and clinical outcome capabilities should continue to grow in importance both during and after this health crisis. This may be crucial in helping States close budget gaps as they deal with fiscal pressures due to lower revenue and higher Medicaid costs. In addition, we believe increasing Medicaid enrollment and improving healthcare utilization and other trends should be beneficial for the HMS business over the coming months,” Lucia concluded.

GUIDANCE:

HMS Holdings Corp. sees FY2020 revenue of $680-690 million, versus the consensus of $682.13 million.

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

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