ICF International, Inc. ICFI has had an impressive run over the past year, appreciating 28.5%.
The company has a robust track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 11.57%. Its earnings for 2024 and 2025 are anticipated to grow 4.6% and 13%, respectively, year over year.
ICF International, Inc. Price
ICF International, Inc. price | ICF International, Inc. Quote
Factors That Bode Well
ICF International’s extensive global presence, spanning 55 regional offices across the United States and 15 international locations, enables it to serve a diverse range of markets, including energy, environment, infrastructure, air transport, healthcare, interactive technology, marketing and e-commerce. This broad market engagement has bolstered the company’s knowledge base and expertise while fostering strong, enduring client relationships.
ICFI’s advisory services are in high demand due to the increased focus on transparency, efficiency and integrating domain knowledge with innovative technology solutions. Growth opportunities are also identified in digital services and strategic communications across all served markets.
The company prioritizes expanding commercial ventures, strengthening technology offerings and penetrating government markets at all levels to boost revenues and shareholder value over the long term.
ICFI strategically utilizes acquisitions for growth. The 2023 acquisition of CMY Solutions is aimed at improving the company’s offerings in power and energy advisory services. The 2022 acquisition of SemanticBits added synergies and scalability for the company’s advanced IT solutions.
ICF International’s current ratio (a measure of liquidity) at the end of the first quarter of 2024 was 1.19, higher than the prior quarter’s 1.07 and the year-ago quarter’s 1.29. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Some Risks
ICFI faces escalating costs due to substantial investments in internal infrastructure and acquisitions. Operating costs and expenses rose by 5.4%, 16.1% and 3.9% in 2023, 2022 and 2021, respectively. Moreover, ICFI is embroiled in various legal matters, adding further strain to its resources and potentially tarnishing its reputation.
Zacks Rank and Stocks to Consider
ICFI currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Zacks Business Services sector are Aptiv APTV and DocuSign DOCU. Each stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APTV has a long-term earnings growth expectation of 20.7%.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.18%. Shares of Aptiv have risen 5.4% in the past three months.
DOCU has a long-term earnings growth expectation of 13.3%.
The company delivered an earnings surprise of 23.7%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of DocuSign have risen 12% in the past three months.
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ICF International, Inc. (ICFI) : Free Stock Analysis Report
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DocuSign (DOCU) : Free Stock Analysis Report