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What Should Investors Know About ICF International, Inc.'s (NASDAQ:ICFI) Growth?

Simply Wall St

After ICF International, Inc.'s (NASDAQ:ICFI) earnings announcement on 30 June 2019, analyst consensus outlook appear cautiously optimistic, as a 19% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 14%. By 2020, we can expect ICF International’s bottom line to reach US$73m, a jump from the current trailing-twelve-month of US$61m. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for ICF International

How will ICF International perform in the near future?

The longer term expectations from the 5 analysts of ICFI is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for ICFI, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NasdaqGS:ICFI Past and Future Earnings, September 1st 2019

From the current net income level of US$61m and the final forecast of US$84m by 2022, the annual rate of growth for ICFI’s earnings is 9.0%. This leads to an EPS of $4.76 in the final year of projections relative to the current EPS of $3.27. With a current profit margin of 4.6%, this movement will result in a margin of 5.6% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For ICF International, there are three key factors you should look at:

  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 ICF International 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 ICF International is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ICF International? 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.