Maximus, Inc. (NYSE:MMS), a Virginia-based provider of business services with annual revenue of $5.3 billion and a market capitalization of $4.48 billion, announced Monday a change in its certifying accountant. According to InvestingPro analysis, the company maintains strong financial health with a perfect Piotroski Score of 9, and current analysis suggests the stock is trading below its Fair Value.
Following a competitive selection process, the company's Audit Committee has approved the dismissal of Ernst & Young LLP (EY) as its independent registered public accounting firm. KPMG LLP (KPMG) has been appointed to take over auditing responsibilities for the fiscal year ending September 30, 2025. This change is contingent on the signing of an engagement letter and KPMG's standard client acceptance procedures.
The reports by EY on Maximus' consolidated financial statements for the fiscal years ending September 30, 2024, and September 30, 2023, did not contain any adverse opinions or disclaimers and were not qualified or modified regarding uncertainty, audit scope, or accounting principles.
Furthermore, Maximus did not consult KPMG on any matters that would require disclosure under the Securities and Exchange Commission's regulations during the fiscal years in question or the subsequent period.
In accordance with regulatory requirements, Maximus has provided EY with the disclosure from this Form 8-K report and has received a letter from EY, dated today, confirming their agreement with the disclosed information. This letter is filed with the SEC as part of the company's formal documentation of the change.
In other recent news, Maximus, a notable provider of government services, has experienced a series of significant developments. The company reported a strong fiscal year 2024 performance, with an organic revenue increase of 8.8% and a record adjusted earnings per share (EPS) of $6.11. Free cash flow also saw a substantial rise, reaching over $400 million, nearly double the previous year's figure.
However, in a separate development, Maximus's contract with the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) for Contact Center Operations was cancelled. This contract was intended for services that Maximus is currently contracted to provide, with option periods extending up to 2031.
Despite these recent developments, Maximus is projecting fiscal 2025 revenue to be between $5.275 billion and $5.425 billion, with an adjusted EPS forecasted to be in the range of $5.70 to $6.00 per share.
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