Why ICF International Inc.'s Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of energy and environmental consultant ICF International  (NASDAQ: ICFI  ) jumped 21% today after the company announced earnings and an acquisition.

So what: Fourth-quarter revenue was down 1% to $229.8 million and net income fell 16% to $7.8 million, or $0.38 per share. The other big news was the acquisition of CITYTECH, which has annual revenue of about $16 million.  

Now what: The fourth quarter was a little lighter than expected but the acquisitions will help growth in 2014 and management expects to exceed $1 billion in revenue and $100 million in EBITDA. Earnings are expected to be between $2.27 and $2.37 per share, which puts the stock at 18 times the top end of forward estimates. That's a steep price for the level of growth ICF is expected to have, and it will keep me from being a buyer today.

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