The analysts covering ICF International, Inc. (NASDAQ:ICFI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory 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 supposed to shrink 8.2% to US$5.39 in the same period. Before this latest update, the analysts had been forecasting revenues of US$2.2b and earnings per share (EPS) of US$6.65 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for ICF International

The consensus price target fell 38% to US$108, with the weaker earnings outlook clearly leading analyst valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 4.6% annualised revenue decline to the end of 2025. That is a notable change from historical 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with ICF International, including a weak balance sheet. For more information, you can click here to discover this and the 1 other warning sign 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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