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Why Is ICF (ICFI) Up 1.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for ICF International (ICFI - Free Report) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ICF due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ICF International Tops Q3 Earnings and Revenues Estimates
ICF International 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.
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.
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 Outlook
ICF International reaffirmed its guidance for the year. Management continues to expect total revenues between $1.48 billion and $1.50 billion. Non-GAAP EPS is expected in the range of $4.10 to $4.25.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, ICF has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ICF has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is ICF (ICFI) Up 1.3% Since Last Earnings Report?
A month has gone by since the last earnings report for ICF International (ICFI - Free Report) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ICF due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ICF International Tops Q3 Earnings and Revenues Estimates
ICF International 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.
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.
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 Outlook
ICF International reaffirmed its guidance for the year. Management continues to expect total revenues between $1.48 billion and $1.50 billion. Non-GAAP EPS is expected in the range of $4.10 to $4.25.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, ICF has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ICF has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.