HMS Holdings Q3 Results Miss Estimates; Sees Q4, FY Revenues Below Market

(RTTNews) - HMS Holdings Corp. (HMSY), a provider of cost containment solutions, reported Friday that its third-quarter net income declined to $6.4 million or $0.07 per share from prior year's $14.0 million or $0.17 per share.

Adjusted earnings per share were $0.19, compared to $0.24 a year ago.

Total revenue in the third quarter was $125.7 million, higher than $122.9 million in the prior year.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.22 per share on revenues of $147.62 million for the quarter. Analysts' estimates typically exclude special items.

Further, the company said its Board of Directors has authorized the repurchase of up to $50 million of the common stock, on a discretionary basis, for a period of up to two years. The new authorization replaces a program that expired in July 2017.

Regarding the outlook, Jeff Sherman, CFO, said, "Lower-than-expected second half revenue requires a reset of our outlook for full year revenue and negates the operating margin expansion we anticipated this year, which was largely dependent upon year-over-year revenue growth."

The company now expects fourth-quarter revenue of approximately $135 million to $140 million, which would result in full year revenue of approximately $508 million to $513 million.

Analysts expect fourth-quarter revenues of $163.25 million and full-year revenues of $632.7 million.