ICF International, Inc. ( ICFI Quick Quote ICFI - Free Report) shares have had an impressive run on the bourses over the past year. The stock has appreciated 43.5% over the past year, significantly outperforming the 5.7% rise of the industry it belongs to and 29.8% growth of the Zacks S&P 500 composite.
The company recently reported third-quarter 2021 non-GAAP earnings of $1.32 per share that 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.
How is ICFI Doing?
ICF has a broad global presence with 56 regional offices across the United States and 22 offices outside the country. It serves a diverse set of markets, including energy, environment, infrastructure, air transport, healthcare, interactive technology, marketing and e-commerce. This, in turn, has helped the company improve its knowledge base and functional expertise over time.
ICF has been successful in establishing and maintaining strong long-term relationships with its clients. In fact, it has been advising the U.S. Environmental Protection Agency and the U.S. Department of Health and Human Services for more than 30 years, the U.S. Department of Energy for more than 25 years, the U.S. Department of Defense for more than 20 years, the European Commission for more than 15 years and certain commercial clients in energy markets for more than 20 years. The company has multi-year relationships with several other government and commercial clients as well. Global presence and diversity of markets ensures diversified and consistent revenue growth for ICF.
ICF continues to witness increase in demand for its advisory services, driven by trends such as increased government focus on environmental initiatives; emphasis on transparency and accountability; efficiency and mission performance management; generational changes; and increased demand for integrating domain knowledge of client mission and programs with innovative technology-enabled solutions. The company is also seeing growth opportunities for technology-based solutions like digital services and strategic communications across all the markets it serves.
ICF continues to focus on expansion of its commercial businesses, strengthening technology-based offerings, expanding its presence in U.S. federal, state and local government markets, pursuing large contract opportunities, and utilizing its business model across geographies. These initiatives come under its long-term strategy to increase revenues and shareholder value.
ICF is seeing escalation in costs as it is making significant investments in internal infrastructure and acquisitions. The company’s operating costs and expenses increased 5.1% in 2020. These expenses rose 9.2% year over year in 2019 and 3.5% in 2018.
Zacks Rank and Stocks to Consider
ICF currently carries a Zacks Rank #2 (Buy).
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader
Business Services sector are Avis Budget ( CAR Quick Quote CAR - Free Report) and Cross Country Healthcare ( CCRN Quick Quote CCRN - Free Report) , both sporting a Zacks Rank #1, and Charles River Associates ( CRAI Quick Quote CRAI - Free Report) , carrying a Zacks Rank #2 (Buy).
Avis Budget has an expected earnings growth rate of 420.6% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 719.1% in the past year. The company has a long-term earnings growth of 18.8%.
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 201.2% in the past year. The company has a long-term earnings growth of 21.5%.
Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.
Charles River’s shares have surged 120.2% in the past year. The company has a long-term earnings growth of 15.5%.