NEW YORK (TheStreet) -- Shares of HMS Holdings (HMSY) - Get Report were gaining 6.92% to $8.81 Friday after the business services company reported its second quarter results before the opening bell.

HMS Holdings reported earnings of 13 cents a share for the second quarter, in line with analysts' estimates for the quarter. Revenue grew 3.9% year over year to $116.93 million for the quarter, above analysts' estimates of $114.86 million.

"We made progress during the quarter in our effort to re-secure a number of state third-party liability (TPL) contracts, including finalization of the Florida engagement; one-year extensions in Washington State and Wisconsin; and contract renewals in Oklahoma and New Mexico," Chairman and CEO Bill Lucia said in a statement.

The company also announced the board authorized a $75 million share repurchase program that will last for two years.

TheStreet Ratings team rates HMS HOLDINGS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HMS HOLDINGS CORP (HMSY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."

You can view the full analysis from the report here: HMSY Ratings Report

HMSY data by YCharts

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