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ICF International (ICFI) Stock Up 2.9% Since Q4 Earnings Beat

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ICF International, Inc. (ICFI - Free Report)  reported better-than-expected fourth-quarter results with a year-over-year increase in revenues and earnings in fourth-quarter 2022. The better-than-expected performance for the fourth quarter appears to have pleased investors as the stock gained 2.9% since the earnings release on Mar 1.

Quarterly earnings (excluding $1.09 from non-recurring items) came in at $1.56, beating the Zacks Consensus mark by 4.7% and increasing 31.1% from the year-ago reported figure. Total revenues of $475.6 million surpassed the Zacks Consensus Estimate by 1.3% and indicated growth of 22.6% on year over year.

ICF International’s shares have hiked 26.8% in the past year compared with its industry’s 15.4% growth.

Quarter Details

Service revenues that constituted 71% of total revenues in the quarter increased 24% on a year-over-year basis and came in at $339.09 million.

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

 

Revenues from government clients came in at $354.3 million, up 29.3% on a year-over-year basis. The U.S. federal government revenues of $264.5 million increased 45.6% year over year and contributed 55.6% to total revenues.

The U.S. state and local government revenues of $65.2 million moved up 7% year over year and contributed 13.7% to total revenues.

International government revenues of $24.6 million were down 21.7% year over year, contributing 5.2% to total revenues.  

Commercial revenues for the reported quarter came in at $121.3 million indicating growth of 6.5% from the year-ago reported figure. Commercial revenues accounted for 25.5% of the total revenue.

Commercial revenues comprised 68.6% of revenue from Energy markets and 24.4% of Marketing services and aviation consulting revenues.

Adjusted EBITDA increased 45% from the year-ago reported figure to $55.2 million. The current adjusted EBITDA margin on revenue came in at 11.6%, up 180 basis points from the year-ago reported level. The adjusted EBITDA margin on service revenue was pegged at 16.3%, 240 basis points above the year-ago reported level.

Backlog and Value of Contracts

Total backlog and funded backlog amounted to $3.9 billion and $1.8 billion at the end of the quarter, respectively. The total value of contracts awarded in the fourth quarter of 2022 came in at $777 million for a quarterly book-to-bill ratio of 1.63.

Balance Sheet & Cash Flow

As of Dec 31, 2022, ICF International had cash and cash equivalents of $11.26 million, 32.5% down from the quarter-ago figure. Long-term debt as of the end of the fourth quarter was $533.1 million, down from $681.2 million reported a quarter ago.

ICFI generated $155.6 million in cash from operating activities. CapEx was $7.2 million. During the quarter the company paid a dividend of $2.63 million.

2023 Guidance

Service revenues are expected in the band of $1.405-$1.465 billion. Total Revenue is expected to be in the range of $1.93-$2 billion. The Zacks Consensus Estimate for the revenue is pegged at $1.96 billion which is below the mid-point of the guided range.

Earnings (on an adjusted basis) are expected in the range of $6.15-$6.45. The Zacks Consensus Estimate is pegged at $5.98.

EBITDA is estimated to range from $210 million to $220 million. The operating cash flow is expected to be 150 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.

The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.

Gartner, Inc. (IT - Free Report) ,currently having a Zacks Rank #2, reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.

Aptiv PLC (APTV - Free Report) , currently carrying a Zacks Rank #3(Hold), reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenues surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.

Equifax (EFX - Free Report) , currently holding a Zacks Rank of 3, reported stellar fourth-quarter 2022 results. The company’s earnings and revenues surpassed the Zacks Consensus Estimate. EFX’s adjusted earnings of $1.52 per share beat the Zacks Consensus Estimate by 2.7% but decreased 17.4% on a year-over-year basis. Revenues of $1.2 billion beat the Zacks Consensus Estimate by 1.5% but decreased 4.4% year over year.

 


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