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ICF International (ICFI) Declines 2% Despite Q4 Earnings Beat

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ICF International, Inc. (ICFI - Free Report) reported mixed fourth-quarter 2023 results, with earnings surpassing Zacks Consensus Estimate but revenues missing the same.

The earnings beat failed to impress investors, as the stock declined 1.7% since the earnings release on Feb 27, 2024.

Quarterly earnings (excluding 52 cents from non-recurring items) per share of $1.68 beat the Zacks Consensus Estimate by 2.4% and gained 7.7% from the year-ago reported figure. Total revenues of $478.4 million missed the Zacks Consensus Estimate by a slight margin but increased 0.6% year over year.

The company’s shares have gained 41.4% in the trailing 12 months, outperforming the 39.2% rally of the industry it belongs to.

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

Segmental Revenues

Revenues from government clients totaled $368.6 million, up 4% on a year-over-year basis. The U.S. state and local government revenues of $75.9 million, representing 15.9% of total revenues, beat our projection of $73.2 million and moved up 16.7% year over year.

International government revenues reached $28.8 million, representing 6% of the total revenues, surpassing our prediction of $24.1 million. It increased 17.2% from the year-ago quarter.

U.S. federal government revenues of $263.9 million (which contributed 55.2% to the total revenues) missed our estimate of $266.1 million and declined marginally year over year.

Commercial revenues, representing 22.9% of the total revenues, amounted to $109.8 million, missing our estimate of $118.1 million, up 7.6% from the year-ago quarter.

Operating Results

Adjusted EBITDA increased 3% from fourth-quarter 2022 to $57 million. The current adjusted EBITDA margin of 11.9% increased 30 basis points from the year-ago quarter.

Balance Sheet and Cash Flow

ICF International exited the quarter with cash and cash equivalents of $6.4 million compared with $5.1 million in third-quarter 2023. Long-term debt at the end of the quarter was $404.4 million, down from $581.3 million in the previous quarter.

ICFI generated $106.8 million in cash from operating activities. CapEx was $4.5 million.

2024 Guidance

Total revenues are expected between $2.03 billion and $2.1 billion. The mid-point of the company’s guided range ($2.06 billion) is below the Zacks Consensus Estimate of $2.07 billion.

Earnings are anticipated to be $6.6-$6.9 per share. The mid-point of the company’s guided range ($6.75 per share) is above the Zacks Consensus Estimate of $6.72. EBITDA is estimated between $220 million to $230 million.

Currently, ICF International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Aptiv (APTV - Free Report) reported mixed fourth-quarter 2023 results.

APTV’s adjusted earnings of $1.4 per share outpaced the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. Revenues of $4.9 billion missed the consensus mark by 0.5% but increased 6% year over year.

Equifax (EFX - Free Report) reported better-than-expected fourth-quarter 2023 results.

EFX’s earnings (excluding 75 cents from non-recurring items) were $1.81 per share, beating the Zacks Consensus Estimate by 4% and increasing 19.1% from the year-ago figure. Revenues of $1.33 billion beat the consensus estimate by 1.1% and increased 10.7% from the year-ago figure on a reported basis and 14% on a local-currency basis.


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