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ICF International (ICFI) Q1 Earnings Top Estimates, Up Y/Y
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ICF International, Inc. (ICFI - Free Report) reported better-than-expected first-quarter 2023 results with year-over-year increases in revenues and earnings.
Impressive results appeared to have pleased investors as the stock has gained 2.5% since the earnings release on May 9.
Quarterly earnings (excluding 55 cents from non-recurring items) of $1.42 per share beat the Zacks Consensus Estimate by 0.7% and increased 8.4% from the year-ago reported figure. Total revenues of $483.3 million surpassed the Zacks Consensus Estimate by 1.1% and improved 16.9% on a year-over-year basis.
Quarter Details
Service revenues increased 15% on a year-over-year basis to $351.3 million.
ICF International, Inc. Price, Consensus and EPS Surprise
Revenues from government clients totaled $363.3 million, up 16.3% on a year-over-year basis. The U.S. federal government revenues of $267.7 million increased 22.2% year over year and contributed 55.4% to total revenues.
The U.S. state and local government revenues of $74.9 million moved up 13.3% year over year and contributed 15.5% to total revenues.
International government revenues of $20.7 million were down 24.5% year over year, contributing 4.3% to total revenues.
Commercial revenues, accounted for 24.8% of the total revenues, amounted to $119.9 million, rose 18.8% from the year-ago reported figure. It comprised 66% and 27.8% of revenues from Energy markets and, Marketing services and aviation consulting, respectively.
Adjusted EBITDA increased 22% from the year-ago reported figure to $51 million. The current adjusted EBITDA margin on revenues were 10.5%, up 40 basis points from the year-ago reported level. Adjusted EBITDA margin on service revenues were 14.5%, expanded 80 basis points from the year-ago reported figure.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.7 billion and $1.7 billion at the end of the quarter, respectively. The total value of contracts awarded in the first quarter of 2023 was $410 million for a quarterly book-to-bill ratio of 1.3.
Balance Sheet & Cash Flow
As of Mar 31, ICF International had cash and cash equivalents of $5,364 million, down 52.3% from the quarter-ago figure. Long-term debt at the end of the first quarter was $572 million, up from $533.1 million reported a quarter ago.
ICFI generated $16.8 million in cash from operating activities. CapEx was $6.4 million. During the quarter under review the company paid dividends worth $2.64 million.
Reposts 2023 Guidance
Service revenues are projected in the band of $1.405-$1.465 billion. Total Revenues are expected to be between $1.93 billion and $2 billion. The midpoint of the guided range ($1.965 billion) is below the Zacks Consensus Estimate of $1.97 billion.
Earnings (on an adjusted basis) are anticipated in the range of $6.15-$6.45 per share. The midpoint of the guided range meets the Zacks Consensus Estimate of $6.30.
EBITDA is estimated to be between $210 million and $220 million. Operating cash flow is expected to be 150 million.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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ICF International (ICFI) Q1 Earnings Top Estimates, Up Y/Y
ICF International, Inc. (ICFI - Free Report) reported better-than-expected first-quarter 2023 results with year-over-year increases in revenues and earnings.
Impressive results appeared to have pleased investors as the stock has gained 2.5% since the earnings release on May 9.
Quarterly earnings (excluding 55 cents from non-recurring items) of $1.42 per share beat the Zacks Consensus Estimate by 0.7% and increased 8.4% from the year-ago reported figure. Total revenues of $483.3 million surpassed the Zacks Consensus Estimate by 1.1% and improved 16.9% on a year-over-year basis.
Quarter Details
Service revenues increased 15% on a year-over-year basis to $351.3 million.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote
Revenues from government clients totaled $363.3 million, up 16.3% on a year-over-year basis. The U.S. federal government revenues of $267.7 million increased 22.2% year over year and contributed 55.4% to total revenues.
The U.S. state and local government revenues of $74.9 million moved up 13.3% year over year and contributed 15.5% to total revenues.
International government revenues of $20.7 million were down 24.5% year over year, contributing 4.3% to total revenues.
Commercial revenues, accounted for 24.8% of the total revenues, amounted to $119.9 million, rose 18.8% from the year-ago reported figure. It comprised 66% and 27.8% of revenues from Energy markets and, Marketing services and aviation consulting, respectively.
Adjusted EBITDA increased 22% from the year-ago reported figure to $51 million. The current adjusted EBITDA margin on revenues were 10.5%, up 40 basis points from the year-ago reported level. Adjusted EBITDA margin on service revenues were 14.5%, expanded 80 basis points from the year-ago reported figure.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $3.7 billion and $1.7 billion at the end of the quarter, respectively. The total value of contracts awarded in the first quarter of 2023 was $410 million for a quarterly book-to-bill ratio of 1.3.
Balance Sheet & Cash Flow
As of Mar 31, ICF International had cash and cash equivalents of $5,364 million, down 52.3% from the quarter-ago figure. Long-term debt at the end of the first quarter was $572 million, up from $533.1 million reported a quarter ago.
ICFI generated $16.8 million in cash from operating activities. CapEx was $6.4 million. During the quarter under review the company paid dividends worth $2.64 million.
Reposts 2023 Guidance
Service revenues are projected in the band of $1.405-$1.465 billion. Total Revenues are expected to be between $1.93 billion and $2 billion. The midpoint of the guided range ($1.965 billion) is below the Zacks Consensus Estimate of $1.97 billion.
Earnings (on an adjusted basis) are anticipated in the range of $6.15-$6.45 per share. The midpoint of the guided range meets the Zacks Consensus Estimate of $6.30.
EBITDA is estimated to be between $210 million and $220 million. Operating cash flow is expected to be 150 million.
Zacks Rank
ICF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.