Latest news with #ICFI
Yahoo
16-05-2025
- Business
- Yahoo
ICFI Q1 Earnings Call: Commercial Energy Growth Offsets Federal Slowdown, Guidance Maintained
Professional consulting firm ICF International (NASDAQ:ICFI) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.4% year on year to $487.6 million. Its non-GAAP profit of $1.94 per share was 12.1% above analysts' consensus estimates. Is now the time to buy ICFI? Find out in our full research report (it's free). Revenue: $487.6 million vs analyst estimates of $486.5 million (1.4% year-on-year decline, in line) Adjusted EPS: $1.94 vs analyst estimates of $1.73 (12.1% beat) Adjusted EBITDA: $55.2 million vs analyst estimates of $54.04 million (11.3% margin, 2.1% beat) Operating Margin: 7.9%, in line with the same quarter last year Free Cash Flow was -$36.49 million compared to -$15.23 million in the same quarter last year Backlog: $3.4 million at quarter end, down 5.6% year on year Market Capitalization: $1.63 billion ICF International's first quarter performance reflected a shift in business mix, with growth in commercial, state and local, and international government segments partially offsetting a reduction in federal government revenues. Management attributed the quarter's results to ongoing demand for energy efficiency and electrification programs from utility clients, alongside stable trends in state and local disaster recovery and climate initiatives. CEO John Wasson noted, 'Our revenues from commercial, state and local, and international government clients in aggregate accounted for 51% of first quarter revenues, up from about 45% one year ago.' Looking ahead, management's guidance framework for 2025 remains unchanged, reflecting continued uncertainty around federal government contract funding and new request-for-proposal (RFP) activity. The company expects commercial energy, state and local, and international government revenue to grow at least 15% this year, offsetting federal headwinds. CFO Barry Broadus emphasized maintaining profitability, stating that 'we expect to maintain our adjusted EBITDA margins on 2025 revenues at levels comparable to 2024.' ICF International's leadership identified commercial energy strength, changing federal dynamics, and disciplined cost control as key themes shaping Q1 results and the outlook for 2025. Commercial energy demand rising: The company reported continued expansion in utility-funded energy efficiency, electrification, and flexible load management programs, with commercial energy revenues up 21% year-over-year. This demand is supported by utilities seeking to manage rapid load growth and by regulatory support for reducing energy usage. Federal government headwinds: Revenues from federal clients declined 12.6% year-over-year due to contract funding curtailments, fewer new RFPs, and the impact of stop work orders and terminations. Management estimates approximately $115 million in 2025 revenues have been affected by these disruptions so far. State, local, and international growth: The company saw stable trends in state and local government business, with new disaster recovery contracts and ongoing climate and infrastructure work. International government revenues grew 7.2%, driven by execution on recent contract wins in the European Union and U.K. Business mix supports margins: The increasing share of higher-margin commercial business, greater use of fixed-price contracts, and lower subcontracting contributed to an 80-basis-point expansion in gross margin to 38%. AEG acquisition integration: The Applied Energy Group acquisition at the end of 2024 is progressing as planned, enhancing ICF's technology and advisory capabilities for electric and gas utilities and providing opportunities for synergistic growth. Management's outlook for 2025 is shaped by ongoing challenges in federal contracting, but offset by expected growth in commercial, state and local, and international markets. Commercial energy as growth engine: Leadership expects continued expansion in energy efficiency and electrification programs for utility clients, which are forecast to drive the majority of non-federal revenue growth. Federal government funding risk: Stop work orders and contract terminations are anticipated to persist, with management assuming most stop work orders will not be reinstated this year, adding ongoing uncertainty to federal revenue. Margin stability focus: Cost management and favorable business mix are expected to help maintain adjusted EBITDA margins at 2024 levels, even as revenue growth is pressured by the federal segment. Timothy Mulrooney (William Blair): Asked if Q2 would see peak impact from federal contract disruptions; management replied that Q2 and Q3 are likely to resemble Q1, with ongoing fluidity rather than a pronounced peak. Joseph Vafi (Canaccord Genuity): Queried whether commercial energy performance in Q1 sets the pace for the year; CEO John Wasson confirmed that strong growth and margins in commercial energy are expected to continue. Tobey Sommer (Truist Securities): Inquired about the scalability of commercial energy programs and whether clients are adopting multiple large projects; management noted ongoing pilots in flexible load management and electrification, expecting material scaling over time. Kevin Steinke (Barrington Research): Sought clarity on IT modernization outlook; leadership reiterated its forecast of a 5-10% revenue decline for this business in 2025, citing slower procurement but potential for renewed growth in 2026. Marc Riddick (Sidoti): Asked about potential upside in Health and Human Services work and acquisition plans; management pointed to opportunities in children's health and food safety, and said future M&A would likely focus on energy-related tuck-in deals. In upcoming quarters, the StockStory team will monitor (1) the pace of federal government contract modifications and new RFP releases, (2) whether commercial energy and state and local businesses can sustain double-digit growth, and (3) the successful integration of Applied Energy Group, including any synergistic wins. Developments in federal spending priorities and regulatory policy will be important for future performance. ICF International currently trades at a forward P/E ratio of 12.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
15-05-2025
- Business
- Yahoo
ICFI Stock Shows Limited Movement Despite Q1 Earnings Beat
ICF International, Inc. ICFI reported impressive first-quarter 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. The earnings beat failed to impress the market, as the stock did not move much since the earnings release on May 1. Quarterly earnings per share of $1.94 beat the Zacks Consensus Estimate by 11.5% and gained 9.6% from the year-ago reported figure. Total revenues of $487.7 million marginally missed the Zacks Consensus Estimate and decreased 1.4% year over year. ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote Revenues from government clients increased 12.6% from the year-ago quarter's level to $343.6 million, below our estimate of $364.7 million. The U.S. state and local government revenues of $76.9 million, representing 15.8% of total revenues, lagged our prediction of $90.7 million and declined 0.13% year over year. International government revenues reached $27.1 million, representing 5.6% of the total revenues, lagging our anticipated $30.4 million. However, it increased 7.2% from the year-ago quarter's actual. U.S. federal government revenues of $239.6 million contributed 49.1% to the total revenues, which missed our estimate of $243.6 million but decreased 12.6% on a year-over-year basis. Commercial revenues, representing 29.5% of the total revenues, amounted to $144.1 million. The figure outpaced our expectation of $121.8 million, up 3.1% from the year-ago quarter. Adjusted EBITDA rose 0.08% year over year to 55.2 million. The current adjusted EBITDA margin of 11.3% increased 10 basis points from the year-ago quarter. ICF International exited the quarter with cash and cash equivalents of $5.7 billion compared with $5 billion in the previous quarter. Long-term debt at the end of the quarter was $502 million, up from $411.7 million in the previous quarter. ICFI used $33 million in cash from operating activities. CapEx was $3.5 million. For the second quarter of 2025, ICFI expects revenues to be similar to those of the first quarter of 2025. For 2025, GAAP EPS is anticipated to range from flat to down 10% from last year's levels. The company continues to expect full-year operating cash flow to be approximately $150 million, and capital expenditures are anticipated to be approximately $26 million to $28 million. The full-year tax rate is now expected to be approximately 18.5%. Currently, ICF International carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company's earnings beat the Zacks Consensus Estimate, while revenues missed the mark. FI's adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the ZacksEarnings Calendar to stay ahead of market-making news.) The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company's earnings topped the Zacks Consensus Estimate, while revenues missed the mark. IPG's adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report ICF International, Inc. (ICFI) : Free Stock Analysis Report Fiserv, Inc. (FI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
3 Services Stocks Facing Headwinds
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 3.9%. This drop was worse than the S&P 500's 1% loss. Investors should tread carefully as many of these companies are also cyclical, and any misstep can have you catching a falling knife. Keeping that in mind, here are three services stocks best left ignored. Market Cap: $1.59 billion Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. Why Do We Avoid ICFI? Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.6% for the past two years was weak Sales are projected to tank by 7.1% over the next 12 months as demand evaporates 5.2 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position ICF International is trading at $86.10 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including ICFI in your portfolio, it's free. Market Cap: $1.81 billion Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services. Why Do We Pass on CSGS? 3.4% annual revenue growth over the last two years was slower than its business services peers Anticipated sales growth of 2.2% for the next year implies demand will be shaky Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results At $67.09 per share, CSG trades at 13.7x forward P/E. If you're considering CSGS for your portfolio, see our FREE research report to learn more. Market Cap: $42.18 billion Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Why Do We Think Twice About VRSK? 1.9% annual revenue growth over the last five years was slower than its business services peers Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.8% annually Verisk's stock price of $301.79 implies a valuation ratio of 41.7x forward P/E. To fully understand why you should be careful with VRSK, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
29-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: ICF International (NASDAQ:ICFI) Vs The Rest Of The Government & Technical Consulting Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at government & technical consulting stocks, starting with ICF International (NASDAQ:ICFI). The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins. The 7 government & technical consulting stocks we track reported a very strong Q4. As a group, revenues beat analysts' consensus estimates by 2.5% while next quarter's revenue guidance was 6.7% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. ICF International reported revenues of $496.3 million, up 3.8% year on year. This print was in line with analysts' expectations, and overall, it was a very strong quarter for the company with revenue guidance for next quarter exceeding analysts' expectations and a narrow beat of analysts' EPS estimates. ICF International delivered the weakest performance against analyst estimates of the whole group. The stock is down 13.3% since reporting and currently trades at $86.69. Is now the time to buy ICF International? Access our full analysis of the earnings results here, it's free. Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards. UL Solutions reported revenues of $739 million, up 8% year on year, outperforming analysts' expectations by 1.9%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $58.37. Is now the time to buy UL Solutions? Access our full analysis of the earnings results here, it's free. With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches. Booz Allen Hamilton reported revenues of $2.92 billion, up 13.5% year on year, exceeding analysts' expectations by 1.7%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts' organic revenue estimates and a decent beat of analysts' EPS estimates. As expected, the stock is down 7.5% since the results and currently trades at $119.31. Read our full analysis of Booz Allen Hamilton's results here. With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. Maximus reported revenues of $1.40 billion, up 5.7% year on year. This number beat analysts' expectations by 8.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts' EPS estimates. Maximus achieved the biggest analyst estimates beat among its peers. The stock is down 10% since reporting and currently trades at $68.44. Read our full, actionable report on Maximus here, it's free. With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches. SAIC reported revenues of $1.84 billion, up 5.8% year on year. This print surpassed analysts' expectations by 1.4%. It was a very strong quarter as it also put up an impressive beat of analysts' EPS estimates and a narrow beat of analysts' full-year EPS guidance estimates. The stock is up 15.1% since reporting and currently trades at $120.28. Read our full, actionable report on SAIC here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
CBC
27-04-2025
- General
- CBC
'The children are eating less now': Nunavummiut protest end of food voucher program
Even in the midst of Nunavut Quest celebrations, residents in Igloolik gathered on Thursday to protest the end to funding for hamlet food vouchers for Inuit children. "The children are eating less now, " Stephen Qrunnut said in Inuktitut, as he held a placard decrying the cost of living in the North. According to advocacy group Campaign 2000, Nunavut has the highest child poverty rates in Canada, at 42 per cent. Nearly all of the hamlets in the territory rolled out a food voucher program last year. In the past, that was funded by the Inuit Child First Initiative (ICFI), which was given a one year extension last month. But Indigenous Services Canada (ISC) says the ICFI is meant for temporary relief to address immediate risk factors to children. "It is not intended nor structured to displace government income assistance through 'universal' programs such as food vouchers," ISC said in a statement. Going forward, any group requests for food will be based on each individual child, and they must show how an Inuk child has been rejected or experienced gaps and delays in accessing government services. As a result, at least nine Nunavut hamlets have publicly confirmed the end of the voucher program. Some Inuit organizations, like Ilitaqsiniq and Tungasuvvingat Inuit in Ontario, are also winding down some of their early years programming. Pleas for help already From April 1 to April 10, 2025, 98 requests for products, services and support were approved under the ICFI – mostly for travel, health services and economic support. Sixteen were related to food, but no large-scale food requests were approved. Igloolik's ICFI co-ordinator, Carolyn Tapardjuk, says she's already noticed the impact of the food voucher program ending in her community on March 31, 2025. That was when the previous round of funding expired. "Some of the people are requesting food from family, on Facebook, and through the local radio station," she said. Right now, she has 30 expectant mothers in a community of more than 2,000 people. While some hamlets are still waiting for an official decision on their outcome, Sanirajak has received a rejection notice for its application. The program lasted 10 months in Sanirajak. Its community economic development officer, Roger Beaudry, says he saw improvements in school attendance and mental health. "Even when people were sick, they were fed. They were able to go to the nursing station and see a doctor … they weren't incapacitated," he said. Accessibility of individual requests Beaudry has helped make individual requests for children in Sanirajak in the past. Last summer, they had families living in shacks and needed support. They managed to get subsidies for fuel and water – but they were the lucky ones. "When I did some individual requests, about 50 per cent of them got refused," he said. He said there is a lot of paperwork involved and small communities like his don't have access to the services needed to get that documentation. Sindu Govindapillai, as director of Qupanaq – an organization that administers ICFI funding – has helped many Nunavummiut with their individual applications, including before the hamlet voucher programs were introduced. She observed numerous barriers, including the need for a support letter from a health professional about an individual's needs, the challenges of communicating that for unilingual Inuktitut speakers, and internet access. "And probably the most humiliating, honestly, is having to justify at an individual level why your child uniquely needs food," she said. ISC's operational bulletin says the changes are to ensure the long-term sustainability of the ICFI by remaining focused "on its core mission: providing funding to Inuit children who face barriers to accessing products, services and supports." Statistics Canada sets Canada's official poverty line using the market basket measure. It defines how much a family of four would have to earn to afford a basic standard of living, by calculating the cost of a basket of goods and services including food, clothing, shelter and transportation. According to that measure, a family of four in the Qikiqtaaluk (Baffin) region, outside of Iqaluit, would have to make $116,368 to stay above the poverty line. "Even with hamlet food voucher programs, we are only getting families 41 per cent of the way to that market basket measure poverty line," Govindapillai said. "We have to look at what the situation is writ large in Nunavut and ask ourselves, is this something that we would accept in the rest of Canada?" A long-term model that's Inuit specific ISC says it's continuing to develop an Inuit specific model, alongside Inuit partners, for the ICFI for the long term, which they will transition to once it's approved. Govindapillai says Ottawa should not be ending the hamlet voucher program without finding a suitable alternative. She also wants to see ICFI be granted the same legal protections as Jordan's Principle, which is a legal principle for the Government of Canada to address gaps and discrimination with accessing government-funded services. "We never want to be in a world where, with the next election cycle, a critical program that fills in gaps in health, education and social services for any children in Nunavut can be eradicated based on whichever party comes into power," she said. With no clear path forward, Igloolik's Carolyn Tapardjuk says she'll continue to protest and petition for the food voucher program to continue.
