Latest news with #ICFI
Yahoo
31-07-2025
- Business
- Yahoo
ICF International (NASDAQ:ICFI) Misses Q2 Revenue Estimates
Professional consulting firm ICF International (NASDAQ:ICFI) fell short of the market's revenue expectations in Q2 CY2025, with sales falling 7% year on year to $476.2 million. Its non-GAAP profit of $1.66 per share was 5.2% above analysts' consensus estimates. Is now the time to buy ICF International? Find out in our full research report. ICF International (ICFI) Q2 CY2025 Highlights: Revenue: $476.2 million vs analyst estimates of $481.1 million (7% year-on-year decline, 1% miss) Adjusted EPS: $1.66 vs analyst estimates of $1.58 (5.2% beat) Adjusted EBITDA: $52.88 million vs analyst estimates of $51.44 million (11.1% margin, 2.8% beat) Operating Margin: 8.4%, in line with the same quarter last year Free Cash Flow Margin: 9.7%, down from 10.8% in the same quarter last year Backlog: $3.4 billion at quarter end Market Capitalization: $1.52 billion Company Overview Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $1.98 billion in revenue over the past 12 months, ICF International is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, ICF International grew its sales at a decent 5.9% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. ICF International's recent performance shows its demand has slowed as its annualized revenue growth of 1.3% over the last two years was below its five-year trend. ICF International also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. ICF International's backlog reached $3.4 billion in the latest quarter. This quarter, ICF International missed Wall Street's estimates and reported a rather uninspiring 7% year-on-year revenue decline, generating $476.2 million of revenue. Looking ahead, sell-side analysts expect revenue to decline by 4.3% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. ICF International was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.1% was weak for a business services business. On the plus side, ICF International's operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, ICF International generated an operating margin profit margin of 8.4%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. ICF International's EPS grew at a spectacular 13.6% compounded annual growth rate over the last five years, higher than its 5.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into ICF International's quality of earnings can give us a better understanding of its performance. As we mentioned earlier, ICF International's operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. On top of that, its share count shrank by 2.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For ICF International, its two-year annual EPS growth of 11.1% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, ICF International reported adjusted EPS at $1.66, down from $1.69 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 5.2%. Over the next 12 months, Wall Street expects ICF International's full-year EPS of $7.60 to shrink by 10.8%. Key Takeaways from ICF International's Q2 Results It was encouraging to see ICF International beat analysts' EPS expectations this quarter. On the other hand, its revenue slightly missed. Overall, this was a weaker quarter. The stock traded down 1.5% to $83.01 immediately following the results. Is ICF International an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
ICFI Q1 Earnings Call: Commercial Energy Growth Offsets Federal Slowdown, Guidance Maintained
Professional consulting firm ICF International (NASDAQ:ICFI) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.4% year on year to $487.6 million. Its non-GAAP profit of $1.94 per share was 12.1% above analysts' consensus estimates. Is now the time to buy ICFI? Find out in our full research report (it's free). Revenue: $487.6 million vs analyst estimates of $486.5 million (1.4% year-on-year decline, in line) Adjusted EPS: $1.94 vs analyst estimates of $1.73 (12.1% beat) Adjusted EBITDA: $55.2 million vs analyst estimates of $54.04 million (11.3% margin, 2.1% beat) Operating Margin: 7.9%, in line with the same quarter last year Free Cash Flow was -$36.49 million compared to -$15.23 million in the same quarter last year Backlog: $3.4 million at quarter end, down 5.6% year on year Market Capitalization: $1.63 billion ICF International's first quarter performance reflected a shift in business mix, with growth in commercial, state and local, and international government segments partially offsetting a reduction in federal government revenues. Management attributed the quarter's results to ongoing demand for energy efficiency and electrification programs from utility clients, alongside stable trends in state and local disaster recovery and climate initiatives. CEO John Wasson noted, 'Our revenues from commercial, state and local, and international government clients in aggregate accounted for 51% of first quarter revenues, up from about 45% one year ago.' Looking ahead, management's guidance framework for 2025 remains unchanged, reflecting continued uncertainty around federal government contract funding and new request-for-proposal (RFP) activity. The company expects commercial energy, state and local, and international government revenue to grow at least 15% this year, offsetting federal headwinds. CFO Barry Broadus emphasized maintaining profitability, stating that 'we expect to maintain our adjusted EBITDA margins on 2025 revenues at levels comparable to 2024.' ICF International's leadership identified commercial energy strength, changing federal dynamics, and disciplined cost control as key themes shaping Q1 results and the outlook for 2025. Commercial energy demand rising: The company reported continued expansion in utility-funded energy efficiency, electrification, and flexible load management programs, with commercial energy revenues up 21% year-over-year. This demand is supported by utilities seeking to manage rapid load growth and by regulatory support for reducing energy usage. Federal government headwinds: Revenues from federal clients declined 12.6% year-over-year due to contract funding curtailments, fewer new RFPs, and the impact of stop work orders and terminations. Management estimates approximately $115 million in 2025 revenues have been affected by these disruptions so far. State, local, and international growth: The company saw stable trends in state and local government business, with new disaster recovery contracts and ongoing climate and infrastructure work. International government revenues grew 7.2%, driven by execution on recent contract wins in the European Union and U.K. Business mix supports margins: The increasing share of higher-margin commercial business, greater use of fixed-price contracts, and lower subcontracting contributed to an 80-basis-point expansion in gross margin to 38%. AEG acquisition integration: The Applied Energy Group acquisition at the end of 2024 is progressing as planned, enhancing ICF's technology and advisory capabilities for electric and gas utilities and providing opportunities for synergistic growth. Management's outlook for 2025 is shaped by ongoing challenges in federal contracting, but offset by expected growth in commercial, state and local, and international markets. Commercial energy as growth engine: Leadership expects continued expansion in energy efficiency and electrification programs for utility clients, which are forecast to drive the majority of non-federal revenue growth. Federal government funding risk: Stop work orders and contract terminations are anticipated to persist, with management assuming most stop work orders will not be reinstated this year, adding ongoing uncertainty to federal revenue. Margin stability focus: Cost management and favorable business mix are expected to help maintain adjusted EBITDA margins at 2024 levels, even as revenue growth is pressured by the federal segment. Timothy Mulrooney (William Blair): Asked if Q2 would see peak impact from federal contract disruptions; management replied that Q2 and Q3 are likely to resemble Q1, with ongoing fluidity rather than a pronounced peak. Joseph Vafi (Canaccord Genuity): Queried whether commercial energy performance in Q1 sets the pace for the year; CEO John Wasson confirmed that strong growth and margins in commercial energy are expected to continue. Tobey Sommer (Truist Securities): Inquired about the scalability of commercial energy programs and whether clients are adopting multiple large projects; management noted ongoing pilots in flexible load management and electrification, expecting material scaling over time. Kevin Steinke (Barrington Research): Sought clarity on IT modernization outlook; leadership reiterated its forecast of a 5-10% revenue decline for this business in 2025, citing slower procurement but potential for renewed growth in 2026. Marc Riddick (Sidoti): Asked about potential upside in Health and Human Services work and acquisition plans; management pointed to opportunities in children's health and food safety, and said future M&A would likely focus on energy-related tuck-in deals. In upcoming quarters, the StockStory team will monitor (1) the pace of federal government contract modifications and new RFP releases, (2) whether commercial energy and state and local businesses can sustain double-digit growth, and (3) the successful integration of Applied Energy Group, including any synergistic wins. Developments in federal spending priorities and regulatory policy will be important for future performance. ICF International currently trades at a forward P/E ratio of 12.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
15-05-2025
- Business
- Yahoo
ICFI Stock Shows Limited Movement Despite Q1 Earnings Beat
ICF International, Inc. ICFI reported impressive first-quarter 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. The earnings beat failed to impress the market, as the stock did not move much since the earnings release on May 1. Quarterly earnings per share of $1.94 beat the Zacks Consensus Estimate by 11.5% and gained 9.6% from the year-ago reported figure. Total revenues of $487.7 million marginally missed the Zacks Consensus Estimate and decreased 1.4% year over year. ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote Revenues from government clients increased 12.6% from the year-ago quarter's level to $343.6 million, below our estimate of $364.7 million. The U.S. state and local government revenues of $76.9 million, representing 15.8% of total revenues, lagged our prediction of $90.7 million and declined 0.13% year over year. International government revenues reached $27.1 million, representing 5.6% of the total revenues, lagging our anticipated $30.4 million. However, it increased 7.2% from the year-ago quarter's actual. U.S. federal government revenues of $239.6 million contributed 49.1% to the total revenues, which missed our estimate of $243.6 million but decreased 12.6% on a year-over-year basis. Commercial revenues, representing 29.5% of the total revenues, amounted to $144.1 million. The figure outpaced our expectation of $121.8 million, up 3.1% from the year-ago quarter. Adjusted EBITDA rose 0.08% year over year to 55.2 million. The current adjusted EBITDA margin of 11.3% increased 10 basis points from the year-ago quarter. ICF International exited the quarter with cash and cash equivalents of $5.7 billion compared with $5 billion in the previous quarter. Long-term debt at the end of the quarter was $502 million, up from $411.7 million in the previous quarter. ICFI used $33 million in cash from operating activities. CapEx was $3.5 million. For the second quarter of 2025, ICFI expects revenues to be similar to those of the first quarter of 2025. For 2025, GAAP EPS is anticipated to range from flat to down 10% from last year's levels. The company continues to expect full-year operating cash flow to be approximately $150 million, and capital expenditures are anticipated to be approximately $26 million to $28 million. The full-year tax rate is now expected to be approximately 18.5%. Currently, ICF International carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company's earnings beat the Zacks Consensus Estimate, while revenues missed the mark. FI's adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the ZacksEarnings Calendar to stay ahead of market-making news.) The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company's earnings topped the Zacks Consensus Estimate, while revenues missed the mark. IPG's adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report ICF International, Inc. (ICFI) : Free Stock Analysis Report Fiserv, Inc. (FI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
3 Services Stocks Facing Headwinds
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 3.9%. This drop was worse than the S&P 500's 1% loss. Investors should tread carefully as many of these companies are also cyclical, and any misstep can have you catching a falling knife. Keeping that in mind, here are three services stocks best left ignored. Market Cap: $1.59 billion Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. Why Do We Avoid ICFI? Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.6% for the past two years was weak Sales are projected to tank by 7.1% over the next 12 months as demand evaporates 5.2 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position ICF International is trading at $86.10 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including ICFI in your portfolio, it's free. Market Cap: $1.81 billion Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services. Why Do We Pass on CSGS? 3.4% annual revenue growth over the last two years was slower than its business services peers Anticipated sales growth of 2.2% for the next year implies demand will be shaky Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results At $67.09 per share, CSG trades at 13.7x forward P/E. If you're considering CSGS for your portfolio, see our FREE research report to learn more. Market Cap: $42.18 billion Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Why Do We Think Twice About VRSK? 1.9% annual revenue growth over the last five years was slower than its business services peers Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.8% annually Verisk's stock price of $301.79 implies a valuation ratio of 41.7x forward P/E. To fully understand why you should be careful with VRSK, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
29-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: ICF International (NASDAQ:ICFI) Vs The Rest Of The Government & Technical Consulting Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at government & technical consulting stocks, starting with ICF International (NASDAQ:ICFI). The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins. The 7 government & technical consulting stocks we track reported a very strong Q4. As a group, revenues beat analysts' consensus estimates by 2.5% while next quarter's revenue guidance was 6.7% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. ICF International reported revenues of $496.3 million, up 3.8% year on year. This print was in line with analysts' expectations, and overall, it was a very strong quarter for the company with revenue guidance for next quarter exceeding analysts' expectations and a narrow beat of analysts' EPS estimates. ICF International delivered the weakest performance against analyst estimates of the whole group. The stock is down 13.3% since reporting and currently trades at $86.69. Is now the time to buy ICF International? Access our full analysis of the earnings results here, it's free. Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards. UL Solutions reported revenues of $739 million, up 8% year on year, outperforming analysts' expectations by 1.9%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $58.37. Is now the time to buy UL Solutions? Access our full analysis of the earnings results here, it's free. With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches. Booz Allen Hamilton reported revenues of $2.92 billion, up 13.5% year on year, exceeding analysts' expectations by 1.7%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts' organic revenue estimates and a decent beat of analysts' EPS estimates. As expected, the stock is down 7.5% since the results and currently trades at $119.31. Read our full analysis of Booz Allen Hamilton's results here. With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. Maximus reported revenues of $1.40 billion, up 5.7% year on year. This number beat analysts' expectations by 8.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts' EPS estimates. Maximus achieved the biggest analyst estimates beat among its peers. The stock is down 10% since reporting and currently trades at $68.44. Read our full, actionable report on Maximus here, it's free. With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches. SAIC reported revenues of $1.84 billion, up 5.8% year on year. This print surpassed analysts' expectations by 1.4%. It was a very strong quarter as it also put up an impressive beat of analysts' EPS estimates and a narrow beat of analysts' full-year EPS guidance estimates. The stock is up 15.1% since reporting and currently trades at $120.28. Read our full, actionable report on SAIC here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
