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ICF International (ICFI) Q1 Earnings & Revenues Top Estimates

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ICF International, Inc. (ICFI - Free Report) delivered impressive first-quarter 2022 results wherein both earnings and revenues beat the Zacks Consensus Estimate. However, better-than-expected results failed to impress the market as there has not been any major price change since the earnings release on May 4.

Non-GAAP earnings (excluding 37 cents from non-recurring items) of $1.31 per share surpassed the Zacks Consensus Estimate by 18% and rose 15.9% on a year-over-year basis. Revenues of $413.5 million also beat the consensus mark 1.2% and climbed 9.2% year over year owing to rising service revenues (up 9% year over year).  

Revenues in Detail

Revenues from government clients came in at $311.9 million, up 15.7% on a year-over-year basis. The U.S. federal government revenues of $220.3 million increased 25.2% year over year and contributed 53% to total revenues.  

The U.S. state and local government revenues of $64.8 million moved up 14% year over year and contributed 16% to total 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

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

Commercial revenues totaled $26.7 million, down 27.2% from the year-ago quarter’s figure and contributed 6% to total revenues. Energy markets and marketing services contributed 60% and 29%, 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 first quarter of 2022 came in at $361 million for a quarterly book-to-bill ratio of 1.27.

Operational Results

Adjusted EBITDA of $42.3 million declined 12% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 10.2% increased 20 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 13.9%, up 40 bps year over year.

Balance Sheet

ICF exited the first quarter with a cash and cash equivalent balance of $7.4 million compared with $8.25 million recorded at the end of the previous quarter. ICFI had a long-term debt of $449.7 million compared with $411.6 million at the end of the prior quarter.

ICFI used $7.1 million of cash from operating activities while capex was $6.5 million. ICF paid out dividends of $2.6 million in the quarter.

Dividend

On May 4, 2022, ICF declared a quarterly cash dividend of 14 cents per share, to be paid out on Jul 14 to its stockholders of record as of Jun 10.

2022 Guidance

ICF 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 $5.25.

Revenues are projected in the range of $1.7-$1.76 billion. The midpoint ($1.73 billion) of the guidance is higher than the current Zacks Consensus Estimate of 1.72 billion. Service revenues are expected in the band of $1.225-$1.275 billion.

Adjusted EBITDA is expected between $168 million to $180 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.

Earnings Snapshots

Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.

ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.

Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.