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ICF (ICFI) Down 0.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for ICF International (ICFI - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ICF due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ICF International Reports Q4 Earnings Beat
ICF International reported better-than-expected fourth-quarter results with a year-over-year increase in revenues and earnings in fourth-quarter 2022.
Quarterly earnings (excluding $1.09 from non-recurring items) came in at $1.56, beating the Zacks Consensus mark by 4.7% and increasing 31.1% from the year-ago reported figure. Total revenues of $475.6 million surpassed the Zacks Consensus Estimate by 1.3% and indicated growth of 22.6% on year over year.
Quarter Details
Service revenues that constituted 71% of total revenues in the quarter increased 24% on a year-over-year basis and came in at $339.09 million.
Revenues from government clients came in at $354.3 million, up 29.3% on a year-over-year basis. The U.S. federal government revenues of $264.5 million increased 45.6% year over year and contributed 55.6% to total revenues.
The U.S. state and local government revenues of $65.2 million moved up 7% year over year and contributed 13.7% to total revenues.
International government revenues of $24.6 million were down 21.7% year over year, contributing 5.2% to total revenues.
Commercial revenues for the reported quarter came in at $121.3 million indicating growth of 6.5% from the year-ago reported figure. Commercial revenues accounted for 25.5% of the total revenue.
Commercial revenues comprised 68.6% of revenue from Energy markets and 24.4% of Marketing services and aviation consulting revenues.
Adjusted EBITDA increased 45% from the year-ago reported figure to $55.2 million. The current adjusted EBITDA margin on revenue came in at 11.6%, up 180 basis points from the year-ago reported level. The adjusted EBITDA margin on service revenue was pegged at 16.3%, 240 basis points above the year-ago reported level.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.9 billion and $1.8 billion at the end of the quarter, respectively. The total value of contracts awarded in the fourth quarter of 2022 came in at $777 million for a quarterly book-to-bill ratio of 1.63.
Balance Sheet & Cash Flow
As of Dec 31, 2022, ICF International had cash and cash equivalents of $11.26 million, 32.5% down from the quarter-ago figure. Long-term debt as of the end of the fourth quarter was $533.1 million, down from $681.2 million reported a quarter ago.
ICFI generated $155.6 million in cash from operating activities. CapEx was $7.2 million. During the quarter the company paid a dividend of $2.63 million.
2023 Guidance
Service revenues are expected in the band of $1.405-$1.465 billion. Total Revenue is expected to be in the range of $1.93-$2 billion.
Earnings (on an adjusted basis) are expected in the range of $6.15-$6.45.
EBITDA is estimated to range from $210 million to $220 million. The operating cash flow is expected to be 150 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 6.01% due to these changes.
VGM Scores
At this time, ICF has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise ICF has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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ICF (ICFI) Down 0.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for ICF International (ICFI - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ICF due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ICF International Reports Q4 Earnings Beat
ICF International reported better-than-expected fourth-quarter results with a year-over-year increase in revenues and earnings in fourth-quarter 2022.
Quarterly earnings (excluding $1.09 from non-recurring items) came in at $1.56, beating the Zacks Consensus mark by 4.7% and increasing 31.1% from the year-ago reported figure. Total revenues of $475.6 million surpassed the Zacks Consensus Estimate by 1.3% and indicated growth of 22.6% on year over year.
Quarter Details
Service revenues that constituted 71% of total revenues in the quarter increased 24% on a year-over-year basis and came in at $339.09 million.
Revenues from government clients came in at $354.3 million, up 29.3% on a year-over-year basis. The U.S. federal government revenues of $264.5 million increased 45.6% year over year and contributed 55.6% to total revenues.
The U.S. state and local government revenues of $65.2 million moved up 7% year over year and contributed 13.7% to total revenues.
International government revenues of $24.6 million were down 21.7% year over year, contributing 5.2% to total revenues.
Commercial revenues for the reported quarter came in at $121.3 million indicating growth of 6.5% from the year-ago reported figure. Commercial revenues accounted for 25.5% of the total revenue.
Commercial revenues comprised 68.6% of revenue from Energy markets and 24.4% of Marketing services and aviation consulting revenues.
Adjusted EBITDA increased 45% from the year-ago reported figure to $55.2 million. The current adjusted EBITDA margin on revenue came in at 11.6%, up 180 basis points from the year-ago reported level. The adjusted EBITDA margin on service revenue was pegged at 16.3%, 240 basis points above the year-ago reported level.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.9 billion and $1.8 billion at the end of the quarter, respectively. The total value of contracts awarded in the fourth quarter of 2022 came in at $777 million for a quarterly book-to-bill ratio of 1.63.
Balance Sheet & Cash Flow
As of Dec 31, 2022, ICF International had cash and cash equivalents of $11.26 million, 32.5% down from the quarter-ago figure. Long-term debt as of the end of the fourth quarter was $533.1 million, down from $681.2 million reported a quarter ago.
ICFI generated $155.6 million in cash from operating activities. CapEx was $7.2 million. During the quarter the company paid a dividend of $2.63 million.
2023 Guidance
Service revenues are expected in the band of $1.405-$1.465 billion. Total Revenue is expected to be in the range of $1.93-$2 billion.
Earnings (on an adjusted basis) are expected in the range of $6.15-$6.45.
EBITDA is estimated to range from $210 million to $220 million. The operating cash flow is expected to be 150 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 6.01% due to these changes.
VGM Scores
At this time, ICF has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise ICF has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.