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ICF International (ICFI) Stock Up 4.2% on Q3 Earnings Beat
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ICF International, Inc. (ICFI - Free Report) delivered impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock moved up 4.2% since the earnings release on Nov 2, owing to the better-than-expected results and strong earnings guidance for 2021. ICF International raised its guidance for non-GAAP earnings per share to $4.70-$4.90 from the previously expected $4.35-$4.65. The raised guidance is above the current Zacks Consensus Estimate of $4.61.
Non-GAAP earnings (excluding 25 cents from non-recurring items) of $1.32 per share surpassed the Zacks Consensus Estimate by 18.9% and increased 20% on a year-over-year basis. Revenues of $394.1 million surpassed the consensus mark by 2.4% and increased 9.4% year over year, owing to a 4% year-over-year increase in service revenues.
Notably, the stock has increased 50.1% in the past year compared with 9% growth of the industry it belongs to.
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Revenues in Detail
Revenues from government clients came in at $285.9 million, up 16.1% on a year-over-year basis. The U.S. federal government revenues of $195.1 million increased 11.4% year over year and contributed 49% to total revenues. The U.S. state and local government revenues of $58.5 million moved up 15.1% year over year and contributed 15% to total revenues.
International government revenues of $32.2 million were up 59.4% year over year, contributing 8% to total revenues. This surge was driven by significant pass-through revenues.
Commercial revenues totaled $108.2 million, down 5.3% from the year-ago quarter’s figure and contributed 28% of total revenues. Energy markets and marketing services contributed 57% and 32%, respectively, to commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.1 billion and $1.7 billion at the end of the quarter, respectively. The total value of contracts awarded in the quarter came in at $604 million, for a quarterly book-to-bill ratio of 1.53.
Operational Results
Adjusted EBITDA of $43.8 million increased 16% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 11.1% increased 60 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 15.9%, up 160 bps year over year.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF exited the third quarter with cash and cash equivalent balance of $7.88 million compared with $9.6 million recorded at the end of the previous quarter. The company had a long-term debt of $269.7 million compared with $321.7 million at the end of the prior quarter.
The company generated around $58.4 million of cash from operating activities and capex was $4.8 million. ICF paid out dividends of $2.6 million in the quarter.
Dividend Declared
On Nov 2, 2021, ICF declared a quarterly cash dividend of 14 cents per share. The dividend will be paid out on Jan 12, to stockholders on record as of Dec 10.
2021 Guidance
Revenues are still projected in the range of $1.525-$1.575 billion. The midpoint ($1.55 billion) of the guidance is below the current Zacks Consensus Estimate of $1.57 billion.
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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ICF International (ICFI) Stock Up 4.2% on Q3 Earnings Beat
ICF International, Inc. (ICFI - Free Report) delivered impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock moved up 4.2% since the earnings release on Nov 2, owing to the better-than-expected results and strong earnings guidance for 2021. ICF International raised its guidance for non-GAAP earnings per share to $4.70-$4.90 from the previously expected $4.35-$4.65. The raised guidance is above the current Zacks Consensus Estimate of $4.61.
Non-GAAP earnings (excluding 25 cents from non-recurring items) of $1.32 per share surpassed the Zacks Consensus Estimate by 18.9% and increased 20% on a year-over-year basis. Revenues of $394.1 million surpassed the consensus mark by 2.4% and increased 9.4% year over year, owing to a 4% year-over-year increase in service revenues.
Notably, the stock has increased 50.1% in the past year compared with 9% growth of the industry it belongs to.
Revenues in Detail
Revenues from government clients came in at $285.9 million, up 16.1% on a year-over-year basis. The U.S. federal government revenues of $195.1 million increased 11.4% year over year and contributed 49% to total revenues. The U.S. state and local government revenues of $58.5 million moved up 15.1% year over year and contributed 15% to total revenues.
International government revenues of $32.2 million were up 59.4% year over year, contributing 8% to total revenues. This surge was driven by significant pass-through revenues.
Commercial revenues totaled $108.2 million, down 5.3% from the year-ago quarter’s figure and contributed 28% of total revenues. Energy markets and marketing services contributed 57% and 32%, respectively, to commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.1 billion and $1.7 billion at the end of the quarter, respectively. The total value of contracts awarded in the quarter came in at $604 million, for a quarterly book-to-bill ratio of 1.53.
Operational Results
Adjusted EBITDA of $43.8 million increased 16% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 11.1% increased 60 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 15.9%, up 160 bps year over year.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote
Balance Sheet
ICF exited the third quarter with cash and cash equivalent balance of $7.88 million compared with $9.6 million recorded at the end of the previous quarter. The company had a long-term debt of $269.7 million compared with $321.7 million at the end of the prior quarter.
The company generated around $58.4 million of cash from operating activities and capex was $4.8 million. ICF paid out dividends of $2.6 million in the quarter.
Dividend Declared
On Nov 2, 2021, ICF declared a quarterly cash dividend of 14 cents per share. The dividend will be paid out on Jan 12, to stockholders on record as of Dec 10.
2021 Guidance
Revenues are still projected in the range of $1.525-$1.575 billion. The midpoint ($1.55 billion) of the guidance is below the current Zacks Consensus Estimate of $1.57 billion.
EBITDA is expected in the high-end of the range of $145-$155 million or slightly above. ICF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.