Yahoo Finance ICF International (ICFI) Gains From Buyouts Amid Rising Costs
ICF International ICFI has been coming across opportunities to improve its technology-based solutions. The company’s acquisition strategy is essential in enhancing and expanding its offerings.
ICFIreported impressive first-quarter 2024 results. Quarterly adjusted earnings per share of $1.77 beat the Zacks Consensus Estimate by 22.9% and gained 24.7% from the year-ago reported figure. Total revenues of $494.4 million beat the Zacks Consensus Estimate by a slight margin but increased 2.3% year over year.
ICF International, Inc. Revenue (TTM)
ICF International, Inc. revenue-ttm | ICF International, Inc. Quote
How is ICFI Doing?
ICF International is seeing growth in demand for advisory services. It is driven by a heightened government focus on environmental initiatives, emphasis on transparency and accountability, efficiency and mission performance management, generational changes, and others. The company is also noticing opportunities to grow in its technology-based solutions, including digital services and strategic communications across all markets it serves.
ICFIhas a broad global presence with 55 regional offices across the United States and 15 offices outside the country. It serves a diverse set of markets. Global presence and market diversity ensure diversified and consistent revenue growth. The company's revenues increased 10.3% year over year in 2023. We estimate revenues to grow 5.2%, 7.8% and 13.4% in 2024, 2025 and 2026, respectively.
Acquisitions are vital for the company’s growth strategy. In 2023, ICFIacquired CMY Solutions to enhance the company's offerings in power and energy advisory services. In 2022, SemanticBits was acquired, which added synergies and scalability for advanced IT solutions. Creative Systems and Consulting was acquired in 2022 as well to expand ICFI’s federal IT modernization/digital transformation capabilities with leading Salesforce and Microsoft implementation teams.
ICF International's current ratio (a measure of liquidity) at the end of first-quarter 2024 was pegged at 1.19, higher than 1.07 in the preceding quarter. A current ratio of more than 1 often indicates that the company will easily pay off its short-term obligations.
ICFIfaces an escalation in costs due to significant investments in internal infrastructure and acquisitions. The company’s operating costs and expenses increased 5.4%, 16.1%, and 3.9% year over year in 2023, 2022 and 2021, respectively. We expect it to increase 5%, 6.7% and 13.6% in 2024, 2025 and 2026, respectively.
Zacks Rank & Stocks to Consider
ICFI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Barrett Business Services BBSI and Charles River Associates CRAI
Barrett Business Services has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BBSI has a long-term earnings growth expectation of 14%. It delivered a trailing four-quarter earnings surprise of 38.6%, on average.
Charles River Associates currently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 16%.
CRAI delivered a trailing four-quarter earnings surprise of 19.1%, on average.
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ICF International, Inc. (ICFI) : Free Stock Analysis Report
