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ICF International (ICFI) Stock Up 8.2% on Q3 Earnings Beat
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ICF International, Inc. (ICFI - Free Report) reported better-than-expected third-quarter 2023 results, with year-over-year increases in revenues and earnings.
Impressive results appeared to have pleased investors as the stock has gained 8.2% since the earnings release on Nov 2.
Quarterly earnings (excluding 56 cents from non-recurring items) of $1.81 per share beat the Zacks Consensus Estimate by 10.4% and gained 12.4% from the year-ago reported figure. Total revenues of $501.5 million surpassed the Zacks Consensus Estimate by 1.1% and improved 7.2% on a year-over-year basis.
Details of the Quarter
Revenues from government clients totaled $383.3 million, up 6.6% on a year-over-year basis. The U.S. federal government revenues of $279.3 million (contributed 55.7% to total revenues) outpaced our estimate of $277.5 million and jumped 2.8% year over year.
The U.S. state and local government revenues of $76.4 million (15.2%) outshined our projection of $73.8 million and moved up 17.7% year over year.
ICF International, Inc. Price, Consensus and EPS Surprise
International government revenues reached $27.6 million (5.5%), surpassing our prediction of $24.2 million. The metric gained 19.9% year over year.
Commercial revenues (23.6%) amounted to $118.2 million, rising 9.2% from the year-ago figure. It comprised 76.5% and 15.6% of revenues from Energy markets, and Marketing services and aviation consulting, respectively.
Adjusted EBITDA climbed 7.3% from the year-earlier reported figure to $54.3 million. The current adjusted EBITDA margin on revenues of 10.8% has been kept flat from the prior-year levels.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.8 billion and $1.8 billion at the end of the quarter, respectively. Total value of contracts awarded in the third quarter of 2023 was $875 million for a quarterly book to bill ratio of 1.7.
Balance Sheet & Cash Flow
As of Sep 30, ICF International had cash and cash equivalents of $5,084 million compared with $6,972 million in the previous quarter. Long-term debt at the end of the second quarter was $510.7 million, down from $581.3 million reported a quarter ago.
ICFI generated $25.68 million in cash from operating activities. CapEx was $4.76 million.
Reposts 2023 Guidance
Total revenues are expected to be between $1.95 billion and $1.98 billion (prior view: $1.93 billion and $2 billion). The midpoint of the guided range ($1.965 billion) is below the Zacks Consensus Estimate of $1.97 billion.
Earnings (on an adjusted basis) are anticipated in the range of $6.40-$6.50 per share (prior view: $6.15-$6.45 per share). The Zacks Consensus Estimate is pegged at $6.36 per share.
EBITDA is estimated to be between $212 million to $218 million (prior view: $210 million and $220 million). Operating cash flow is projected to be 150 million.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
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ICF International (ICFI) Stock Up 8.2% on Q3 Earnings Beat
ICF International, Inc. (ICFI - Free Report) reported better-than-expected third-quarter 2023 results, with year-over-year increases in revenues and earnings.
Impressive results appeared to have pleased investors as the stock has gained 8.2% since the earnings release on Nov 2.
Quarterly earnings (excluding 56 cents from non-recurring items) of $1.81 per share beat the Zacks Consensus Estimate by 10.4% and gained 12.4% from the year-ago reported figure. Total revenues of $501.5 million surpassed the Zacks Consensus Estimate by 1.1% and improved 7.2% on a year-over-year basis.
Details of the Quarter
Revenues from government clients totaled $383.3 million, up 6.6% on a year-over-year basis. The U.S. federal government revenues of $279.3 million (contributed 55.7% to total revenues) outpaced our estimate of $277.5 million and jumped 2.8% year over year.
The U.S. state and local government revenues of $76.4 million (15.2%) outshined our projection of $73.8 million and moved up 17.7% year over year.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote
International government revenues reached $27.6 million (5.5%), surpassing our prediction of $24.2 million. The metric gained 19.9% year over year.
Commercial revenues (23.6%) amounted to $118.2 million, rising 9.2% from the year-ago figure. It comprised 76.5% and 15.6% of revenues from Energy markets, and Marketing services and aviation consulting, respectively.
Adjusted EBITDA climbed 7.3% from the year-earlier reported figure to $54.3 million. The current adjusted EBITDA margin on revenues of 10.8% has been kept flat from the prior-year levels.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.8 billion and $1.8 billion at the end of the quarter, respectively. Total value of contracts awarded in the third quarter of 2023 was $875 million for a quarterly book to bill ratio of 1.7.
Balance Sheet & Cash Flow
As of Sep 30, ICF International had cash and cash equivalents of $5,084 million compared with $6,972 million in the previous quarter. Long-term debt at the end of the second quarter was $510.7 million, down from $581.3 million reported a quarter ago.
ICFI generated $25.68 million in cash from operating activities. CapEx was $4.76 million.
Reposts 2023 Guidance
Total revenues are expected to be between $1.95 billion and $1.98 billion (prior view: $1.93 billion and $2 billion). The midpoint of the guided range ($1.965 billion) is below the Zacks Consensus Estimate of $1.97 billion.
Earnings (on an adjusted basis) are anticipated in the range of $6.40-$6.50 per share (prior view: $6.15-$6.45 per share). The Zacks Consensus Estimate is pegged at $6.36 per share.
EBITDA is estimated to be between $212 million to $218 million (prior view: $210 million and $220 million). Operating cash flow is projected to be 150 million.
Zacks Rank
ICF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.