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ICF International (ICFI) Q1 Earnings Top Estimates, Up Y/Y

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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.

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