ICF International, Inc. (NASDAQ:ICFI) is scheduled to report fourth-quarter 2018 results on Feb 26, after market close.
Strength across client mix, solid operational efficiency and lower tax rate are likely to boost ICF International’s results.
Over the past year, shares of ICF International have gained 30.9%, outperforming the 27.3% rise of the industry it belongs to.
Let's check out how things are shaping up for the announcement.
Strength Across Client Mix to Drive the Top Line
The Zacks Consensus Estimate for fourth-quarter 2018 revenues is pegged at $354.24 million, indicating year-over-year growth of 10.3%. The upside is likely to be driven by strength across government and commercial clients. In third-quarter 2018, revenues of $332.96 million increased 9.1% year over year.
On the basis of client mix, government client revenues are expected to benefit from increase in state and local government business as well as international government work, which are likely to be partially offset by revenue decline from federal government clients.
Disaster recovery work in Puerto Rico marks a major win in the company’s state and local government business. The company looks well-poised to receive additional contracts in the state and local government clients following the buyout of DMS.
Revenues from commercial clients should benefit from marketing services and energy markets work, whichare likely to be partially offsetby decline across certain infrastructure and aviation consulting projects.
Bottom Line to Improve Year Over Year
The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.23 per share, indicating year-over-year growth of 57.7%. The bottom line should benefit from revenue growth, solid operational efficiency and lower tax rate. In third-quarter 2018, adjusted earnings of $1.01 per share increased 21.7% on a year-over-year basis.
What Our Model Says
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
ICF International has an Earnings ESP of 0.00% and a Zacks Rank #3.
ICF International, Inc. Price and EPS Surprise
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.
Insperity (NYSE:NSP) has an Earnings ESP of +3.72% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Waste Management (NYSE:WM) has an Earnings ESP of +1.08% and a Zacks Rank #3.
IQVIA Holdings (NYSE:IQV) has an Earnings ESP of +0.85% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Insperity, Inc. (NSP): Free Stock Analysis Report
ICF International, Inc. (ICFI): Free Stock Analysis Report
Waste Management, Inc. (WM): Free Stock Analysis Report
IQVIA Holdings Inc. (IQV): Free Stock Analysis Report
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Zacks Investment Research