The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Maximus (NYSE: MMS) and the rest of the government & technical consulting stocks fared in Q1.
The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins.
The 8 government & technical consulting stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6%.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Best Q1: Maximus (NYSE: MMS)
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Maximus reported revenues of $1.36 billion, flat year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
“We are proud of our teams across the business who are focused on mission-critical service delivery of important government programs,” said Bruce Caswell, President and Chief Executive Officer.
Maximus achieved the biggest analyst estimates beat of the whole group. The stock is up 2.9% since reporting and currently trades at $69.18.
Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.
ICF International (NASDAQ: ICFI)
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
ICF International reported revenues of $487.6 million, down 1.4% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EPS estimates.
The market seems unhappy with the results as the stock is down 1.1% since reporting. It currently trades at $84.32.
Is now the time to buy ICF International? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Booz Allen Hamilton (NYSE: BAH)
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Booz Allen Hamilton reported revenues of $2.97 billion, up 7.3% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Booz Allen Hamilton delivered the weakest full-year guidance update in the group. As expected, the stock is down 21% since the results and currently trades at $102.
Read our full analysis of Booz Allen Hamilton’s results here.
UL Solutions (NYSE: ULS)
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
UL Solutions reported revenues of $705 million, up 5.2% year on year. This number met analysts’ expectations. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates.
The stock is up 18.4% since reporting and currently trades at $70.87.
Read our full, actionable report on UL Solutions here, it’s free.
Jacobs Solutions (NYSE: J)
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.
Jacobs Solutions reported revenues of $2.91 billion, up 2.2% year on year. This print lagged analysts' expectations by 3.5%. All in all, it was a slower quarter for the company.
Jacobs Solutions had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $126.71.
Read our full, actionable report on Jacobs Solutions here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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