NASDAQ$ICFI

ICF International Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ICF reported strong Q2 2023 results with double-digit revenue and EBITDA growth, driven by key growth markets and strategic acquisitions.

ICF reported an 18.2% increase in revenue to $500.1 million for Q2 2023. Net income was $20.3 million, with diluted EPS at $1.07. Non-GAAP EPS increased by 18% to $1.57. The company also saw a 28% year-on-year increase in contract awards and a record business development pipeline of $10.3 billion.

  • Revenue increased by 18.2% to $500.1 million, with 10% organic growth.
  • Net income reached $20.3 million, and diluted EPS was $1.07, including M&A and severance charges.
  • Non-GAAP EPS increased by 18% to $1.57, benefiting from revenue growth and tax optimization.
  • Contract awards increased by 28% year-on-year, with a record business development pipeline of $10.3 billion.

Headline financials

Total Revenue

$500M

Previous: $423M+18.2%
EPS (adj)

$1.57

Previous: $1.33+18.0%
Contract Awards

$441M

Previous: $346M+27.5%
Book-to-Bill Ratio

1.3

Previous: 1.21+7.4%
EBITDA

$47.5M

No prior period
Adjusted EBITDA

$51M

No prior period
Free Cash Flow

$20.3M

Previous: $18.4M+10.4%
Net Income

$20.3M

Previous: $18.4M+10.4%
Operating Income

$32M

Previous: $29.8M+7.6%
Gross Profit

$175M

Previous: $154M+13.3%
Cash & Equivalents

$6.97M

Previous: $6.06M+15.0%
Total Assets

$2.12B

Previous: $1.85B+14.3%
Stock-Based Comp

$2.94M

Previous: $2.94M-0.2%

Revenue & EPS history

ICF · Revenue · Quarterly

$500M

Q2 2023+18.2%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

ICF reaffirms its full-year 2023 guidance, expecting total revenue between $1.930 billion and $2.0 billion, with subcontractor and other direct costs around 27% of total revenue. EBITDA is projected to range from $210 million to $220 million, and diluted EPS is estimated at $4.75 to $5.05, exclusive of special charges. Non-GAAP EPS is expected to range from $6.15 to $6.45. Operating cash flow is expected to be approximately $150 million in 2023.

Tailwinds

  • Continued strong first-half revenue performance reflects market alignment.
  • Investments in people and technology enabled effective contract execution.
  • Sale of Commercial Marketing Group streamlines business.
  • Acquisition of CMY aligns with increased demand from commercial energy clients.
  • Expects to capture a greater share of future growth opportunities.

Headwinds

  • Net impact from the sale of the Commercial Marketing Group and the acquisition of CMY is not expected to have a material effect on the guidance ranges we provided for full-year 2023.
  • Subcontractor and other direct costs will be approximately 27% of total revenue.
  • Diluted EPS is projected at $4.75 to $5.05, exclusive of special charges.
  • Non-GAAP EPS is expected to range from $6.15 to $6.45.
  • Operating cash flow is expected to be approximately $150 million in 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+19.7%

Q4 2013

Best reaction

-20.7%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%-12.6%-5.1%
Q4 2025+4.5%-0.5%+2.6%
Q3 2025-7.3%-2.7%-8.7%
Q1 2025-6.6%-1.1%+0.8%
Q4 2024-20.7%-18.1%-13.8%
Q3 2024-1.9%-0.1%-19.0%
Q2 2024+9.0%+4.4%+12.7%
Q1 2024+3.1%+4.6%-0.8%
Q4 2023-0.6%-1.3%-4.7%
Q3 2023-0.2%+4.9%+13.0%
Q2 2023+4.5%+6.8%+11.0%
Q1 2023+2.0%+2.1%+9.4%
Q4 2022+6.0%+10.2%+5.6%
Q3 2022-10.5%-9.5%-5.7%
Q2 2022+5.8%+5.8%+6.8%
Q1 2022+3.3%+0.8%+4.9%
Q4 2021+1.3%-3.2%+7.0%
Q3 2021+3.1%+3.9%-1.6%
Q2 2021-2.2%+0.2%+3.7%
Q1 2021+3.5%+1.1%-2.0%
Q4 2020-3.0%+1.9%+8.3%
Q3 2020+2.0%+11.2%+9.1%
Q2 2020+9.9%+5.7%+1.2%
Q1 2020-6.1%-9.0%-1.5%
Q4 2019-5.6%-0.4%-19.5%
Q3 2019+3.4%-0.6%+7.3%
Q2 2019-3.3%-6.3%-0.6%
Q1 2019+0.1%-0.5%-5.1%
Q4 2018+1.9%+3.0%+2.8%
Q3 2018+0.4%-7.0%-4.9%
Q2 2018+5.9%+0.7%+10.8%
Q1 2018-2.7%-3.9%+5.8%
Q4 2017+1.7%+6.8%+4.3%
Q3 2017-4.6%-1.4%+0.7%
Q2 2017+1.3%-0.1%+13.3%
Q1 2017+7.8%+7.1%+7.2%
Q4 2016-16.5%-20.1%-20.5%
Q3 2016+4.1%+5.3%+19.6%
Q2 2016+1.5%-0.2%+2.3%
Q1 2016+1.8%
Q4 2015-9.2%
Q3 2015-4.5%
Q2 2015+8.7%
Q1 2015-4.8%
Q4 2014+2.1%
Q3 2014+1.7%
Q2 2014+0.3%
Q1 2014-4.1%
Q4 2013+19.7%
Q3 2013-5.1%
Q2 2013+4.8%
Q1 2013+2.3%
Q4 2012+1.9%
Q3 2012+11.3%
Q2 2012-9.5%
Q1 2011-2.2%
Q1 2012-7.0%
Q4 2009+0.5%
Q4 2011+0.5%
Q3 2010+0.8%
Q3 2011+0.8%
Q4 2010-6.7%
Q2 2011-6.7%
Q2 2010-6.7%
Q1 2010-4.9%

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