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