Please ensure Javascript is enabled for purposes of website accessibility

Why ICF International Inc.'s Shares Popped Today

By Travis Hoium - Feb 27, 2014 at 3:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

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 (ICFI 1.69%) 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ICF International, Inc. Stock Quote
ICF International, Inc.
$95.81 (1.69%) $1.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.