Maximus Inc (NYSE:MMS) shares are volatile in extended trading Tuesday after the company announced the cancellation of a contact center operations contract.

What Happened: After the market close on Tuesday, Maximus said it received notification from the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) that the federal agency has canceled the Contact Center Operations (CCO) 1-800-MEDICARE and Federal Marketplace solicitation.

The company said the contract covered the same scope of work Maximus currently performs under separate contracts through option periods available until 2031.

"Maximus employees have consistently demonstrated their ability to successfully manage this critical program providing essential support to more than 75 million eligible Americans who rely on Medicare and the Federal Marketplace," said Bruce Caswell, president and CEO of Maximus.

"We appreciate the opportunity to continue supporting HHS and CMS in their vital missions and look forward to delivering innovative, high-quality, and reliable solutions that benefit the American public."

Maximus helps improve the delivery of public services as a strategic partner to governments around the world.

MMS Price Action: Maximus shares were volatile at the start of the after-hours session, but were trading approximately flat by the time of publication Tuesday at $73, according to Benzinga Pro.

• Workday Stock Slides After Q3 Results Beat Expectations, FY Subscription Revenue Guidance Revised Lower

Photo: Shutterstock.