ICF International (ICFI) First Estimates of First Quarter Earnings and Revenue

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ICF International, Inc. CIQI released impressive Q1 2022 results, in which both earnings and revenue beat Zacks’ consensus estimate. However, the better than expected results did not impress the market as there has been no major price change since the May 4 earnings release.

Non-GAAP earnings (excluding 37 cents of one-time items) of $1.31 per share beat Zacks consensus estimate by 18% and were up 15.9% year over year other. Revenue of $413.5 million also exceeded the consensus mark of 1.2% and was up 9.2% year-over-year due to higher Services revenue (up 9% from one year to the next).

Income in detail

Revenue from government customers was $311.9 million, up 15.7% year over year. US federal government revenue of $220.3 million increased 25.2% year over year and contributed 53% to total revenue.

US state and local government revenue of $64.8 million increased 14% year over year and contributed 16% to total revenue.

ICF International, Inc. Awards, Consensus and EPS Surprise

ICF International, Inc. price-consensus-eps-surprise-chart | Quote from ICF International, Inc.

International government revenue of $30.5 million decreased 9.5% year over year, contributing 8% to total revenue.

Commercial revenue totaled $26.7 million, down 27.2% from the prior year quarter figure and contributed 6% to total revenue. Energy markets and marketing services contributed 60% and 29% of commercial revenue, respectively.

Order book and value of contracts

Total backlog and funded backlog were $3.2 billion and $1.6 billion at the end of the quarter, respectively. The total value of contracts awarded in the first quarter of 2022 was $361 million for a quarterly book-to-bill ratio of 1.27.

Operational results

Adjusted EBITDA of $42.3 million was down 12% from the prior year quarter figure. Adjusted EBITDA margin to revenue of 10.2% increased 20 basis points (bps) year over year. Services revenue adjusted EBITDA margin was 13.9%, up 40 basis points year-over-year.

Balance sheet

ICF ended the first quarter with a cash and cash equivalent balance of $7.4 million, compared to $8.25 million recorded at the end of the previous quarter. CIQI had long-term debt of $449.7 million, compared to $411.6 million at the end of the previous quarter.

ICFI used $7.1 million of cash from operations while capital expenditures were $6.5 million. ICF paid dividends of $2.6 million during the quarter.

Dividend

On May 4, 2022, ICF declared a quarterly cash dividend of 14 cents per share, to be paid on July 14 to its shareholders of record as of June 10.

Orientation 2022

ICF expects its 2022 non-GAAP earnings per share to be $5.15 to $5.45. The midpoint of the guidance ($5.30) is above the current Zacks consensus estimate of $5.25.

Revenue is expected to be between $1.7 billion and $1.76 billion. The midpoint ($1.73 billion) of the forecast is higher than the current Zacks consensus estimate of $1.72 billion. Services revenue is expected to be between $1.225 billion and $1.275 billion.

Adjusted EBITDA is expected to be between $168 million and $180 million. ICF currently carries a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revenue Insights

Within the broader business services sector, ManpowerGroup Inc. MAN, Omnicom Group Inc. OMC and Equifax Inc. EFX recently released its first quarter 2022 results.

ManpowerGroup posted impressive results for the first quarter of 2022, with earnings and revenue exceeding the Zacks consensus estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark of 20.5% and improved 69.4% year-over-year. Revenue of $5.14 billion exceeded the consensus mark by 0.7% and was up slightly 4.5% year-over-year on a reported basis and 9.8% on an to-date basis. constant exchange rates (cc).

Omnicom released impressive results for the first quarter of 2022, in which earnings and revenue exceeded the Zacks consensus estimate. Earnings of $1.39 per share topped the consensus mark of 8.6% and rose 4.5% year-over-year, driven by strong margin performance. Total revenue of $3.4 billion beat the consensus estimate of 5.4%, but was down slightly year over year.

Equifax announced better than expected first quarter 2022 results. Adjusted earnings of $2.22 per share beat Zacks’ consensus estimate by 3.3% and improved 13% year-over-year. Revenue of $1.36 billion beat the consensus estimate by 2.4% and improved 12.4% year-over-year on a reported basis and 13% on a currency basis local.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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