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ICF International (ICFI) Stock Falls, Despite Q4 Earnings Beat

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ICF International, Inc. (ICFI - Free Report) delivered mixed fourth-quarter 2021 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same.

The earnings beat failed to impress the market since the stock fell 4.2% since the date of results on Feb 24.

Non-GAAP earnings (excluding 56 cents from non-recurring items) of $1.19 per share surpassed the Zacks Consensus Estimate but declined 12.5% on a year-over-year basis. Revenues of $388 million missed the consensus mark by 1.6% and fell 10.7% year over year, owing to low margin pass-through revenues.

ICF International, Inc. Price, Consensus and EPS Surprise

 

ICF International, Inc. Price, Consensus and EPS Surprise

ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote

 

Revenues in Detail

Revenues from government clients came in at $272.6 million, up 9.2% on a year-over-year basis. The U.S. federal government revenues of $181.7 million increased 9.8% year over year and contributed 47% to total revenues.  

The U.S. state and local government revenues of $60.4 million moved up 19.5% year over year and contributed 15% to total revenues.

International government revenues of $30.5 million were down by 9.5% year over year, contributing 8% to total revenues.  

Commercial revenues totaled $115.4 million, down 37.5% from the year-ago quarter’s figure and contributed 30% to total revenues. Energy markets and marketing services contributed 62% and 28%, respectively, to commercial revenues.

Backlog and Value of Contracts

Total backlog and funded backlog amounted to $3.2 billion and $1.6 billion at the end of the quarter, respectively. The total value of contracts awarded in the quarter came in at $652 million, for a quarterly book-to-bill ratio of 1.68.

Operational Results

Adjusted EBITDA of $38 million declined 15.4% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 9.8% decreased 50 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 13.9%, down 320 bps year over year.

Balance Sheet

ICF exited the fourth quarter with a cash and cash equivalent balance of $8.3 million compared with $7.88 million recorded at the end of the previous quarter. The company had a long-term debt of $411.6 million compared with $269.7 million at the end of the prior quarter.

The company generated around $45.5 million of cash from operating activities and capex was $7.6 million. ICF paid out dividends of $2.7 million in the quarter.

Dividend Declared

On Feb 23, 2022, ICF declared a quarterly cash dividend of 14 cents per share. The dividend will be paid out on Apr 13 to stockholders on record as of Mar 25.

2022 Guidance

ICF International expects its 2022 non-GAAP earnings per share to be $5.15-$5.45. The midpoint of the guidance ($5.30) is above the current Zacks Consensus Estimate of $5.24. Revenues are projected in the range of $1.7-$1.76 billion. The midpoint ($1.73 billion) of the guidance is the same as the current Zacks Consensus Estimate. Service revenues are expected in the range of $1.225-$1.275 billion.

Adjusted EBITDA is expected between $168 million to $180 million. ICF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sectorial Snapshot

Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.  

Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.

Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.