ICF International, Inc. ICFI is benefiting from the expansion of its commercial business. Acquisitions are an important element in the company’s growth strategy. A solid liquidity position enables the company to pay off short-term obligations effectively.

ICFI reported mixed third-quarter 2024 results. Quarterly earnings per share of $2.13 beat the Zacks Consensus Estimate by 17.7% and gained 17.7% from the year-ago reported figure. Total revenues of $517 million missed the Zacks Consensus Estimate by 2.9% but increased 3.1% year over year.

How is ICF International Performing?

ICFI continues to witness a surge in demand for its advisory services, led by trends such as rising government focus on environmental initiatives, transparency and accountability, efficiency and mission performance management, generational changes and increasing demand for integrating domain knowledge of client mission and programs with innovative technology-enabled solutions. The company is also witnessing growth opportunities for technology-based solutions, such as digital services and strategic communications across the markets in which it operates.

The company continues to focus on expanding its commercial businesses, bolstering technology-based offerings, expanding its presence in U.S. federal, state, and local government markets, pursuing large contract opportunities, and using its business model across the globe. These strategies are part of its long-term plan to increase top-line and shareholder value.

Buyouts are an important factor in ICF International’s growth strategy. The company acquired CMY Solutions in 2023, an engineering and automation solutions provider, to enhance ICFI’s offerings in power and energy advisory services. In 2022, the company acquired SemanticBits, which added synergies and scalability to advanced IT solutions.  Acquisition of Creative Systems and Consulting, also conducted in 2022, expanded the company’s federal IT modernization/digital transformation power with leading Salesforce and Microsoft implementation teams.

ICF International's current ratio (a measure of liquidity) at the end of the third quarter of 2024 was 1.21, higher than 1.19 in the preceding quarter. A current ratio above 1 indicates that the company should efficiently meet its short-term obligations.

ICFI’s Zacks Rank & Other Stocks to Consider

ICF International currently carries a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks in the broader Zacks Business Services sector are Climb Global Solutions, Inc. CLMB and Qifu Technology, Inc. QFIN.

Climb Global Solutions flaunts a Zacks Rank of 1 (Strong Buy) at present. It has a long-term earnings growth expectation of 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CLMB delivered a trailing four-quarter earnings surprise of 51.1%, on average.

Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%.

QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.

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