(HMSY) HMS Holdings Corp. – Aggressive Growth – Zacks Rank Buy

May 14th, 2009

HMS Holdings Corp. (HMSY) released another earnings surprise followed by bullish comments from its CEO.

Company Description

HMS Holdings Corp. provides payment services for government-sponsored programs in the U.S. The company helps provides coordinate benefits, contain costs, and route claims.

HMS also offers an independent review of medical related issues such as quality of care and others at government and private facilities. The company is headquartered in New York City and carries a market cap of almost $800 million.

75% EPS Growth

Revenue rose 28% to $50 million when the company reported first-quarter results on May 1. Net income surged to $0.21, up 75% since the same quarter last year when HMS reported 12 cents per share.

Earnings were 24% above the consensus estimate, extending HMS’s consecutive surprise streak to 4. Over the past year the company has beat expectations by an average of 16%.

CEO is Bullish

In addition to great results the CEO had very bullish comments in the press release. “HMS’s first quarter represents a strong start to what we expect will be an excellent 2009,” said Bill Lucia, CEO. “We are seeing revenue growth and new business in each of the markets we serve.”

Analysts React

Since the previously mentioned announcements the consensus estimates for 2009 and 2010 are up. The average estimate for this year is now $1.05, up 4 cents and the estimates for next year average $1.37, up from $1.25.

If met the year-over-year growth rates will be 31% for both 2009 and 2010.

The Chart

HMS estimates have been steadily increasing by wide margins over the past few years. Each colored line below corresponds to the axis on the left, while the black line is the stock price.

Zacks Investment Research
View original at: Zacks.com News Feed

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HMS Holdings Corp. Announces Third Quarter EPS of $.39 (Benzinga, 10/29/10)
Read more on HMS Holdings, HMS Networks at Wikinvest

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