ICF International, Inc. (ICFI - Free Report) delivered impressive first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results impressed the market, with the stock’s price increasing 2% since the earnings release on May 4.
In the past year, ICF’s stock has increased 51% compared with 8.9% growth of the industry it belongs to.
Non-GAAP earnings of $1.13 per share surpassed the Zacks Consensus Estimate by 34.5% and increased 36.1% on a year-over-year basis. Moreover, revenues of $378.5 million surpassed the consensus mark by 4.7% and increased 5.6% year over year owing to increase in service revenues.
Revenues in Detail
Revenues from government clients came in at $270.1 million, up 12.9% on a year-over-year basis. The U.S. federal government revenues of $175.9 million increased 13.1% year over year and contributed 46% of total revenues. The U.S. state and local government revenues of $57.2 million declined 6.1% year over year and contributed 15% of total revenues. International government revenues of $37.1 million were down 62.5% year over year, contributing 10% of total revenues.
Commercial revenues totaled $108.4 million, down 8.8% from the year-ago quarter’s figure and contributed 29% of total revenues. Energy markets and marketing services contributed 58% and 33%, respectively, of commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3 billion and $1.6 billion at the end of the quarter, respectively. The total value of contracts awarded in the quarter came in at $596.1 million, up 67% year over year.
Operational Results
Adjusted EBITDA of $37.7 million increased 34.9% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 9.6% increased 220 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 13.5%, up 260 bps year over year.
Balance Sheet
ICF exited the quarter with cash and cash equivalent balance of $8.6 million compared with$13.8 million recorded at the end of the previous quarter. The company had a long-term debt of $314.5 million compared with $303 million at the end of the prior quarter.
The company generated around $5 million of cash from operating activities and capex was $3.6 million. ICF paid out dividends of $2.6 million in the quarter.
2021 Guidance
ICF expects non-GAAP earnings per share in the range of $4.35-$4.65. The midpoint ($4.5) of the guidance is below the current Zacks Consensus Estimate of $4.55.
Revenues are projected in the range of $1.525-$1.575 billion. The midpoint ($1.55 billion) of the guidance is same as the current Zacks Consensus Estimate.
EBITDA is expected to be in the range of $145 million and $155 million. Operating cash flow is anticipated to be approximately $100 million.
ICF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
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ICF International, Inc. (ICFI - Free Report) delivered impressive first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results impressed the market, with the stock’s price increasing 2% since the earnings release on May 4.
In the past year, ICF’s stock has increased 51% compared with 8.9% growth of the industry it belongs to.
Non-GAAP earnings of $1.13 per share surpassed the Zacks Consensus Estimate by 34.5% and increased 36.1% on a year-over-year basis. Moreover, revenues of $378.5 million surpassed the consensus mark by 4.7% and increased 5.6% year over year owing to increase in service revenues.
Revenues in Detail
Revenues from government clients came in at $270.1 million, up 12.9% on a year-over-year basis. The U.S. federal government revenues of $175.9 million increased 13.1% year over year and contributed 46% of total revenues. The U.S. state and local government revenues of $57.2 million declined 6.1% year over year and contributed 15% of total revenues. International government revenues of $37.1 million were down 62.5% year over year, contributing 10% of total revenues.
Commercial revenues totaled $108.4 million, down 8.8% from the year-ago quarter’s figure and contributed 29% of total revenues. Energy markets and marketing services contributed 58% and 33%, respectively, of commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3 billion and $1.6 billion at the end of the quarter, respectively. The total value of contracts awarded in the quarter came in at $596.1 million, up 67% year over year.
Operational Results
Adjusted EBITDA of $37.7 million increased 34.9% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 9.6% increased 220 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 13.5%, up 260 bps year over year.
Balance Sheet
ICF exited the quarter with cash and cash equivalent balance of $8.6 million compared with$13.8 million recorded at the end of the previous quarter. The company had a long-term debt of $314.5 million compared with $303 million at the end of the prior quarter.
The company generated around $5 million of cash from operating activities and capex was $3.6 million. ICF paid out dividends of $2.6 million in the quarter.
2021 Guidance
ICF expects non-GAAP earnings per share in the range of $4.35-$4.65. The midpoint ($4.5) of the guidance is below the current Zacks Consensus Estimate of $4.55.
Revenues are projected in the range of $1.525-$1.575 billion. The midpoint ($1.55 billion) of the guidance is same as the current Zacks Consensus Estimate.
EBITDA is expected to be in the range of $145 million and $155 million. Operating cash flow is anticipated to be approximately $100 million.
ICF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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