Back to top

Image: Bigstock

ICF International (ICFI) Beats on Q3 Earnings and Revenues

Read MoreHide Full Article

ICF International, Inc. (ICFI - Free Report) reported solid third-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.

Non-GAAP EPS of $1.12 beat the consensus mark by 3.7% and improved 10.8% on a year-over-year basis driven by strong operating performance. Revenues of $373.9 million outpaced the consensus mark by 0.6% and increased 12.3% year over year.

So far this year, shares of the company have gained 38% compared with 41.4% rally of the industry it belongs to.

 

Revenues in Detail

Revenues from government clients came in at $247.7 million and improved 11.4% year over year. U.S. federal government revenues of $148.2 million increased 5.6% year over year and contributed 40% to total revenues. U.S. state and local government revenues of $71.5 million rose 28.8% year over year and contributed 19% to total revenues. International government revenues of $28 million, up 5.5% year over year, contributed 7% to total revenues.

Commercial revenues totaled $126.2 million, up 14.1% from the year-ago quarter’s figure and contributed 34% to total revenues. Energy markets contributed 47% to commercial revenues and Marketing services contributed 45% to the same.

Backlog and Value of Contracts

Total backlog and funded backlog amounted to $2.5 billion and $1.3 billion at the end of the quarter, respectively. The total value of contracts awarded was $477.2 million, representing a third quarter book-to-bill ratio of 1.3, and a trailing 12-month (TTM) book-to-bill ratio of 1.0.

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

Operational Results

Adjusted EBITDA was $35.9 million, up 12.8% from the year-ago quarter’s figure. Adjusted EBITDA margin of 9.6% was flat year over year. Adjusted EBITDA margin on service revenues was 14%, up 20 basis points (bps) year over year.

Balance Sheet

ICF International exited third-quarter 2019 with cash and cash equivalent balance of $7.45 million compared with $6.30 million at the end of the previous quarter. The company had a long-term debt of $245 million compared with $288.54 million at the end of the prior quarter.

The company generated $54.3 million of cash from operating activities and capex was $6.17 million. The company paid out dividends of $2.6 million in the reported quarter.

2019 Guidance

ICF International reaffirmed its guidance for the year. Management continues to expect total revenues between $1.48 billion and $1.50 billion. The current Zacks Consensus Estimate of $1.49 billion lies within the guidance.

Non-GAAP EPS is expected in the range of $4.10 to $4.25. The current Zacks Consensus Estimate of $4.21 lies within the guidance.

Zacks Rank & Stocks to Consider

Currently, ICF International carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Zacks Business Services sector are Global Payments (GPN - Free Report) , Mastercard (MA - Free Report) and Cardtronics . While Global Payments sports a Zacks Rank #1, Mastercard and Cardtronics carry a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 17%, 15.9% and 4%, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mastercard Incorporated (MA) - free report >>

Global Payments Inc. (GPN) - free report >>

ICF International, Inc. (ICFI) - free report >>

Published in