As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at government & technical consulting stocks, starting with ICF International (NASDAQ:ICFI).
The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins.
The 7 government & technical consulting stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 6.7% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
ICF International (NASDAQ:ICFI)
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
ICF International reported revenues of $496.3 million, up 3.8% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and a narrow beat of analysts’ EPS estimates.
ICF International Total Revenue
ICF International delivered the weakest performance against analyst estimates of the whole group. The stock is down 13.3% since reporting and currently trades at $86.69.
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
UL Solutions reported revenues of $739 million, up 8% year on year, outperforming analysts’ expectations by 1.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates.
UL Solutions Total Revenue
The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $58.37.
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Booz Allen Hamilton reported revenues of $2.92 billion, up 13.5% year on year, exceeding analysts’ expectations by 1.7%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
As expected, the stock is down 7.5% since the results and currently trades at $119.31.
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Maximus reported revenues of $1.40 billion, up 5.7% year on year. This number beat analysts’ expectations by 8.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates.
Maximus achieved the biggest analyst estimates beat among its peers. The stock is down 10% since reporting and currently trades at $68.44.
With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.
SAIC reported revenues of $1.84 billion, up 5.8% year on year. This print surpassed analysts’ expectations by 1.4%. It was a very strong quarter as it also put up an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
The stock is up 15.1% since reporting and currently trades at $120.28.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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