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ICF International (ICFI) Beats on Q2 Earnings and Revenues
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ICF International, Inc. (ICFI - Free Report) reported impressive second-quarter 2020 numbers, with both earnings and revenues beating the Zacks Consensus Estimate.
Non-GAAP EPS of 89 cents surpassed the consensus mark by 29% but declined 8.2% on a year-over-year basis. Revenues of $354 million beat the consensus mark by 2.1% but decreased 3.5% year over year mainly due to lower pass-through revenues.
Over the past year, ICF’s shares have depreciated 12.4% as against 9.3% growth of the industry it belongs to.
Revenues in Detail
Revenues from government clients came in at $246.8 million, flat year over year. The U.S. federal government revenues of $170.7 million increased 20.8% year over year and contributed 48% to total revenues. The U.S. state and local government revenues of $58 million decreased 20.7% year over year and contributed 17% of total revenues. International government revenues of $23.1 million were down 42.7% year over year, contributing 5% of total revenues.
Commercial revenues totaled $107.2 million, down 11.2% from the year-ago quarter’s figure and contributed 33% of total revenues. Energy markets and marketing services contributed 54% and 35%, respectively, to commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $2.4 billion and $1.3 billion at the end of the second quarter, respectively. The total value of contracts awarded in the quarter came in at $282million.
Operational Results
Adjusted EBITDA of $32.5 million declined marginally from the year-ago quarter’s figure. Adjusted EBITDA margin of 9.2% increased 30 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 12.4%, down 60 bps year over year.
Balance Sheet
ICF exited the quarter with cash and cash equivalent balance of $9.1 million compared with the $58.7 million recorded at the end of the previous quarter. The company had a long-term debt of $441 million compared with $507 million witnessed at the end of the prior quarter.
The company used $26 million of cash from operating activities, and capex was $4.3 million. ICF paid out dividends of $2.6 million in the reported quarter.
2020 Guidance
Management reiterated its guidance for 2020. Revenue expectation continues to be $1.45-$1.51 billion, the midpoint ($1.48 billion) of which is greater than the current Zacks Consensus Estimate of $1.47 billion.
Non-GAAP EPS is expected in the range of $3.50 to $3.80, the midpoint ($3.65) of which is greater than the current Zacks Consensus Estimate of $1.64 billion.
EBITDA is expected to be $126-$136 million. Operating cash flow is anticipated to be around $110 million.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
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ICF International (ICFI) Beats on Q2 Earnings and Revenues
ICF International, Inc. (ICFI - Free Report) reported impressive second-quarter 2020 numbers, with both earnings and revenues beating the Zacks Consensus Estimate.
Non-GAAP EPS of 89 cents surpassed the consensus mark by 29% but declined 8.2% on a year-over-year basis. Revenues of $354 million beat the consensus mark by 2.1% but decreased 3.5% year over year mainly due to lower pass-through revenues.
Over the past year, ICF’s shares have depreciated 12.4% as against 9.3% growth of the industry it belongs to.
Revenues in Detail
Revenues from government clients came in at $246.8 million, flat year over year. The U.S. federal government revenues of $170.7 million increased 20.8% year over year and contributed 48% to total revenues. The U.S. state and local government revenues of $58 million decreased 20.7% year over year and contributed 17% of total revenues. International government revenues of $23.1 million were down 42.7% year over year, contributing 5% of total revenues.
Commercial revenues totaled $107.2 million, down 11.2% from the year-ago quarter’s figure and contributed 33% of total revenues. Energy markets and marketing services contributed 54% and 35%, respectively, to commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $2.4 billion and $1.3 billion at the end of the second quarter, respectively. The total value of contracts awarded in the quarter came in at $282million.
Operational Results
Adjusted EBITDA of $32.5 million declined marginally from the year-ago quarter’s figure. Adjusted EBITDA margin of 9.2% increased 30 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 12.4%, down 60 bps year over year.
Balance Sheet
ICF exited the quarter with cash and cash equivalent balance of $9.1 million compared with the $58.7 million recorded at the end of the previous quarter. The company had a long-term debt of $441 million compared with $507 million witnessed at the end of the prior quarter.
The company used $26 million of cash from operating activities, and capex was $4.3 million. ICF paid out dividends of $2.6 million in the reported quarter.
2020 Guidance
Management reiterated its guidance for 2020. Revenue expectation continues to be $1.45-$1.51 billion, the midpoint ($1.48 billion) of which is greater than the current Zacks Consensus Estimate of $1.47 billion.
Non-GAAP EPS is expected in the range of $3.50 to $3.80, the midpoint ($3.65) of which is greater than the current Zacks Consensus Estimate of $1.64 billion.
EBITDA is expected to be $126-$136 million. Operating cash flow is anticipated to be around $110 million.
ICF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>