HMS Holdings Corp. (NASDAQ: HMSY) is winning in the market Monday despite all the turmoil and volatility that tanked the market earlier. Only recently did this company reported earnings at the tail end of earnings season but what kept it afloat in Monday’s session was a contract that it received from New York State.

The company had $0.13 in earnings per share just below the consensus estimate of $0.14 per share. At the same time the company posted revenues of $116.9 million which beat the street forecasts of $114.5 million.

As for the contract, the company detailed it in an SEC filing that surfaced Monday moring:

On August 24, 2015, HMS Holdings Corp. (the “Registrant”) received a notice from the New York State Office of the Medicaid Inspector General (“OMIG”) that it has selected the Registrant’s wholly owned subsidiary Health Management Systems, Inc. (“HMS”) for award of the Medicaid Third Party Liability Match and Recovery Services contract. OMIG advised HMS that it had determined that HMS is the provider of the best value solution for solicitation number OMIG 15-01. The award is contingent upon the successful execution of a contract. Based on the solicitation, the proposed contract is expected to be for a term of five years, commencing January 7, 2016 through January 6, 2021, with an option to extend the term for two additional one-year periods.

So far on the year shares of HMS have far underperformed the market. In fact shares are down 58% year to date and down 61.6%.

A few analysts weighed in on HMS prior to the announcement of this contract:

• Jefferies reiterated a Buy rating but lowered its price target to $14 from $21.
• Oppenheiemr downgraded HMS to a Market Perform rating from Outperform.
• Merrill Lynch downgraded the company to a Neutral rating from a Buy rating.

Shares of HMS were up 18% at $10.43 on Monday afternoon. The stock has a consensus analyst price target of $16.75 and a 52-week trading range of $8.11 to $23.85.

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