ICF International, Inc. ICFI had an impressive run in the year-to-date period. The company’s shares have gained 21.6% compared with the 20.2% rally of the industry it belongs to and the 16.9% rise of the Zacks S&P 500 composite.
YTD Price Performance
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ICFI’s revenues are expected to increase 5% year over year in 2024 and 7.2% in 2025. Its 2024 earnings are expected to grow by 8.6% and the same for 2025 is anticipated to rise by 10.5%.
ICFI’s Earnings Surprise Positive
ICF International’searnings outpaced the Zacks Consensus Estimate in the past four quarters, delivering an earnings surprise of 11.7%, on average.
Q2 Performance of ICF International Raises Optimism
ICFI’s second-quarter 2024 top and bottom lines exhibit overall improvements. Revenues and earnings per share (EPS) rose 2.4% and 7.6% from the year-ago quarter. The improvement in the top line was driven by growth in commercial energy clients and combined growth in revenues from the state, local and international government clients. Strong margins aided the bottom line.
ICFI Raised EPS & EBITDA Guidance
ICFI raised its second-quarter 2024 earnings guidance to $6.95-$7.25 per share from the $6.60-$6.90 provided at the end of the preceding quarter. The company hiked its second-quarter 2024 EBITDA guidance to $225-$235 million from the $220-$230 million stated at the end of the preceding quarter. The higher margin profile of commercial energy clients and a favorable direct cost mix made ICF International raise its EPS and EBITDA estimates.
ICF International’s Advisory Services Demand Sustains
ICFI continues to witness increased demand for its advisory services. It is driven by trends such as rising government focus on environmental initiatives; emphasis on transparency and accountability; efficiency and mission performance management; generational changes; and growing demand for integrating domain knowledge of client mission and programs with innovative technology-enabled solutions. The company is also witnessing growth opportunities for technology-based solutions like digital services and strategic communications across all the markets it serves.
Expansion Aids ICFI’s Top Line & Shareholder Value
ICF International continues to focus on the expansion of its commercial businesses; strengthening technology-based offerings; gaining more ground in U.S. federal, state and local government markets; pursuing large contract opportunities; and leveraging its business model across geographies. These initiatives come under the company’s long-term strategy to boost revenues and shareholder value.
Zacks Rank & Other Stocks to Consider
ICFI carries a Zacks Rank #2 (Buy) at present.
Investors interested in the Zacks Business Services sector may also look at Qifu Technology, Inc. QFIN and Skillsoft SKIL.
Qifu Technology flaunts a Zacks Rank #1 (Strong Buy) at present. It has a long-term earnings growth expectation of 11.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
QFIN delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Skillsoft currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 10%.
SKIL delivered a trailing four-quarter earnings surprise of 9.9%, on average.
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Qifu Technology, Inc. (QFIN) : Free Stock Analysis Report
Skillsoft Corp. (SKIL) : Free Stock Analysis Report
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