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What Are Analysts Saying About ICF International, Inc.'s (NASDAQ:ICFI) Growth?

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The latest earnings update ICF International, Inc. (NASDAQ:ICFI) released in December 2018 revealed that the business endured a slight headwind with earnings declining from US$63m to US$61m, a change of -2.3%. Below is my commentary, albeit very simple and high-level, on how market analysts predict ICF International's earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

View our latest analysis for ICF International

Analysts' expectations for next year seems buoyant, with earnings growing by a robust 19%. This growth seems to continue into the following year with rates reaching double digit 32% compared to today’s earnings, and finally hitting US$84m by 2022.

NasdaqGS:ICFI Past and Future Earnings, April 7th 2019
NasdaqGS:ICFI Past and Future Earnings, April 7th 2019

Even though it’s informative knowing the growth each year relative to today’s level, it may be more valuable evaluating the rate at which the business is moving every year, on average. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of ICF International's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 12%. This means that, we can presume ICF International will grow its earnings by 12% every year for the next couple of years.

Next Steps:

For ICF International, I've put together three essential aspects you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is ICFI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ICFI is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ICFI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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