We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ICF International (ICFI) Beats on Q3 Earnings, Rises 3.7%
Read MoreHide Full Article
ICF International, Inc. (ICFI - Free Report) reported mixed third-quarter 2020 numbers, with earnings beating estimates and revenue missing the same.
The stock gained 3.7% since the earnings release on Nov 5, as the company‘s earnings guidance for 2020 was impressive. ICF raised non-GAAP diluted earnings per share (EPS) guidance to $3.90-$4.05 from $3.50-$3.80 projected earlier. The midpoint ($3.97) of the guidance is above the Zacks Consensus Estimate of $3.87.
In the past year, ICF’s shares have depreciated 16.9% against 8.2% growth of the industry it belongs to.
Non-GAAP EPS (excluding 16 cents from non-recurring items) of $1.10 per share surpassed the Zacks Consensus Estimate by 27.9% but declined 1.8% on a year-over-year basis. Revenues of $360.3 million missed the consensus mark marginally and declined 3.6% year over year mainly due to lower pass-through revenues.
Revenues in Detail
Revenues from government clients came in at $247 million, flat year over year. The U.S. federal government revenues of $175.1 million increased 18% year over year and contributed 49% to total revenues. The U.S. state and local government revenues of $51.6 million declined 27.8% year over year and contributed 14% of total revenues. International government revenues of $20.3 million were down 27.5% year over year, contributing 6% of total revenues.
Commercial revenues totaled $113.3 million, down 10.2% from the year-ago quarter’s figure and contributed 31% of total revenues. Energy markets and marketing services contributed 53% and 37%, respectively, to commercial revenues.
ICF International, Inc. Price, Consensus and EPS Surprise
Total backlog and funded backlog amounted to $2.9 billion and $1.5 billion at the end of the third quarter, respectively. The total value of contracts awarded in the quarter came in at $792 million.
Operational Results
Adjusted EBITDA of $37.8 million, increased 4.9% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenue of 10.5% increased 90 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 14.3%, up 30 bps year over year.
Balance Sheet
ICF exited the third quarter with cash and cash equivalent balance of $8.2 million compared with the $9.1 million recorded at the end of the previous quarter. The company had a long-term debt of $362.3 million compared with $441 million at the end of the prior quarter.
The company generated $84.4 million of cash from operating activities, and capex was $3.9 million. ICF paid out dividends of $2.6 million in the reported quarter.
Revised 2020 Guidance
Management revised its guidance for 2020. Revenues are projected in the range of $1.46-$1.50 billion (previous guidance: $1.45-$1.51 billion). The midpoint ($1.48 billion) of the revised guided range is greater than the current Zacks Consensus Estimate of $1.47 billion.
Operating cash flow is anticipated to be around $120 million (previous guidance: $110 million).
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the company’s guidance of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and inched up 1.9% on a year-over-year basis. The reported figure was above the company’s guidance of $1.47-$1.55.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
ICF International (ICFI) Beats on Q3 Earnings, Rises 3.7%
ICF International, Inc. (ICFI - Free Report) reported mixed third-quarter 2020 numbers, with earnings beating estimates and revenue missing the same.
The stock gained 3.7% since the earnings release on Nov 5, as the company‘s earnings guidance for 2020 was impressive. ICF raised non-GAAP diluted earnings per share (EPS) guidance to $3.90-$4.05 from $3.50-$3.80 projected earlier. The midpoint ($3.97) of the guidance is above the Zacks Consensus Estimate of $3.87.
In the past year, ICF’s shares have depreciated 16.9% against 8.2% growth of the industry it belongs to.
Non-GAAP EPS (excluding 16 cents from non-recurring items) of $1.10 per share surpassed the Zacks Consensus Estimate by 27.9% but declined 1.8% on a year-over-year basis. Revenues of $360.3 million missed the consensus mark marginally and declined 3.6% year over year mainly due to lower pass-through revenues.
Revenues in Detail
Revenues from government clients came in at $247 million, flat year over year. The U.S. federal government revenues of $175.1 million increased 18% year over year and contributed 49% to total revenues. The U.S. state and local government revenues of $51.6 million declined 27.8% year over year and contributed 14% of total revenues. International government revenues of $20.3 million were down 27.5% year over year, contributing 6% of total revenues.
Commercial revenues totaled $113.3 million, down 10.2% from the year-ago quarter’s figure and contributed 31% of total revenues. Energy markets and marketing services contributed 53% and 37%, respectively, to commercial revenues.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $2.9 billion and $1.5 billion at the end of the third quarter, respectively. The total value of contracts awarded in the quarter came in at $792 million.
Operational Results
Adjusted EBITDA of $37.8 million, increased 4.9% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenue of 10.5% increased 90 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 14.3%, up 30 bps year over year.
Balance Sheet
ICF exited the third quarter with cash and cash equivalent balance of $8.2 million compared with the $9.1 million recorded at the end of the previous quarter. The company had a long-term debt of $362.3 million compared with $441 million at the end of the prior quarter.
The company generated $84.4 million of cash from operating activities, and capex was $3.9 million. ICF paid out dividends of $2.6 million in the reported quarter.
Revised 2020 Guidance
Management revised its guidance for 2020. Revenues are projected in the range of $1.46-$1.50 billion (previous guidance: $1.45-$1.51 billion). The midpoint ($1.48 billion) of the revised guided range is greater than the current Zacks Consensus Estimate of $1.47 billion.
Operating cash flow is anticipated to be around $120 million (previous guidance: $110 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 (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the company’s guidance of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and inched up 1.9% on a year-over-year basis. The reported figure was above the company’s guidance of $1.47-$1.55.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>