NASDAQ$ICFI

ICF International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ICF reported strong revenue growth across major markets, record Q3 contract awards, and raised GAAP and Non-GAAP EPS guidance.

ICF's Q3 2023 results showed a 7% increase in revenue to $502 million. Net income increased by 24% to $24 million, with diluted EPS at $1.25, also up 24%. Non-GAAP EPS rose by 12% to $1.81. The company achieved a record $875 million in contract awards, representing a book-to-bill ratio of 1.7.

  • Revenue was $502 million, up 7%.
  • Net income was $24 million, up 24%; Diluted EPS was $1.25, up 24%.
  • Non-GAAP EPS was $1.81, up 12%.
  • Contract awards were a record $875 million, representing a book-to-bill ratio of 1.7.

Headline financials

Total Revenue

$502M

Previous: $468M+7.2%
EPS (adj)

$1.81

Previous: $1.61+12.4%
Contract Awards

$875M

Previous: $865M+1.2%
Book-to-Bill Ratio

1.7

Previous: 1.31+29.8%
EBITDA

$49.2M

No prior period
Adjusted EBITDA

$54.3M

Previous: $49.8M+9.0%
Capital Expenditures

-$4.74M

No prior period
Free Cash Flow

$23.7M

Previous: $19.1M+24.3%
Net Income

$23.7M

Previous: $19.1M+24.3%
Operating Income

$31.9M

Previous: $28.2M+13.0%
Gross Profit

$178M

Previous: $160M+10.9%
Cash & Equivalents

$5.08M

Previous: $8.48M-40.1%
Total Assets

$2.06B

Previous: $2.16B-4.8%
Stock-Based Comp

$3.45M

Previous: $3.52M-2.0%

Revenue & EPS history

ICF · Revenue · Quarterly

$502M

Q3 2023+7.2%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

ICF narrowed its full-year 2023 revenue guidance to $1,950 million to $1,980 million and expects subcontractor and other direct costs to be approximately 27% of total revenue. Adjusted EBITDA is expected to range from $212 million to $218 million. The company is raising its guidance ranges for diluted EPS to $5.00 to $5.10, exclusive of special charges, and Non-GAAP EPS to $6.40 to $6.50 due to a lower than anticipated tax rate. Operating cash flow is projected at approximately $150 million in 2023.

Tailwinds

  • Key growth markets, utility consulting, disaster management, IT modernization/digital transformation, and climate, environment, and infrastructure services, represented approximately 80% of total nine-month revenues.
  • Year-to-date profitability metrics reflect actions taken to deploy resources to support growth markets, strengthen operating efficiencies, and streamline business.
  • Record sales.
  • Substantial backlog.
  • Robust business development pipeline support expectations for high single-digit organic growth in recurring revenues.

Headwinds

  • Full year 2023 guidance includes $60 million in year-to-date revenues from the Commercial Marketing Group and the commercial U.K. events business, which were divested in 2023.
  • These service lines are estimated to have contributed EPS of approximately $0.20 that will not recur in 2024.
  • Variability and difficulty in making accurate forecasts and projections.
  • Not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures is available to the company without unreasonable effort.
  • The company is unable to estimate the probable significance of the unavailable information.

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 Q3 2023

Historical avgQ3 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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