ICF International, Inc. (NASDAQ:ICFI) Analysts Just Cut Their EPS Forecasts Substantially

Market forces rained on the parade of ICF International, Inc. (NASDAQ:ICFI) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the five analysts covering ICF International, is for revenues of US$1.9b in 2025, which would reflect a perceptible 4.6% reduction in ICF International's sales over the past 12 months. Statutory earnings per share are anticipated to reduce 8.2% to US$5.39 in the same period. Previously, the analysts had been modelling revenues of US$2.2b and earnings per share (EPS) of US$6.65 in 2025. Indeed, we can see that the analysts are a lot more bearish about ICF International's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for ICF International

It'll come as no surprise then, to learn that the analysts have cut their price target 38% to US$108.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.6% by the end of 2025. This indicates a significant reduction from annual growth of 7.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ICF International is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that ICF International's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of ICF International.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with ICF International's financials, such as a weak balance sheet. For more information, you can click here to discover this and the 1 other concern we've identified.

We also provide an overview of the ICF International Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.