HMS Holdings (HMSY) is hired by the U.S. government to ferret out Medicare fraud, and its business growth is very good, Investor’s Business Daily reported.
Recovery audit contractors (RAC) like HMS were created by an act of Congress in 2003 to audit Medicare payments for errors, which are estimated at $48 billion per year, according to IBD.
Analysts estimate that last year, HMS’ revenue rose 20.6% to $365.1 million, while profit jumped 25.5% to 59 cents a share, IBD reported.
HMS is expected to report fourth-quarter earnings on February 17. Analysts expect sales growth of 13.8% over the prior year to $99.2 million, with profit up 14.3% to 16 cents a share, reported IBD.
HMSY is a Cabot Top Ten Trader stock.
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