EPAM Systems Beats Expectations in Q1 with $2.46 EPS
EPAM Systems, Inc. (NYSE: EPAM), a global leader in digital transformation services, has reported its financial results for the first quarter ended March 31, 2024. The company announced first-quarter revenues of $1.165 billion, marking a 3.8% decrease year-over-year.
Despite the challenging demand environment, EPAM demonstrated resilience with GAAP income from operations at 9.5% of revenues and non-GAAP income from operations at 14.9%. The GAAP diluted earnings per share (EPS) increased by $0.24 to $1.97, while non-GAAP diluted EPS slightly decreased by $0.01 to $2.46. CEO Arkadiy Dobkin highlighted the company’s adaptability and ongoing investments in AI-enabled delivery and consulting to navigate the current market conditions.
The company’s performance in the first quarter also showed a strong cash flow, with $129.9 million generated from operating activities, compared to $87.3 million in the same period last year.
Additionally, EPAM continued its share repurchase program, buying back 396 thousand shares for $120.6 million. Despite a slight decrease in cash, cash equivalents, and restricted cash, which totaled $1.990 billion as of March 31, 2024, the company’s financial position remains solid.
As of the end of the quarter, the total headcount was approximately 52,800, including around 47,050 delivery professionals, underscoring EPAM’s commitment to maintaining a robust talent pool.
EPAM Beats Expectations in Q1
EPAM’s first-quarter performance did not fall short of expectations, with analysts projecting an EPS of $2.31 and revenue of $1.16 billion. The reported revenue of $1.165 billion was slightly above the anticipated figure, and the adjusted EPS of $2.46 exceeded the expected EPS.
EPM Expects Full-Year Revenues to Be Between $4.57 Billion to $4.67 Billion
Looking ahead, EPAM has updated its full-year outlook, now expecting revenues to be in the range of $4.575 billion to $4.675 billion, reflecting a year-over-year decline at the midpoint of the range. The company has also adjusted its expectations for GAAP diluted EPS to be in the range of $7.34 to $7.64 and has narrowed the expected range for non-GAAP diluted EPS to $10.00 to $10.30.
For the second quarter, EPAM anticipates revenues to be between $1.135 billion and $1.145 billion, with GAAP diluted EPS in the range of $1.52 to $1.60 and non-GAAP diluted EPS between $2.21 and $2.29. These projections account for the ongoing challenges in the demand environment and EPAM’s strategic measures to optimize operations and invest in growth areas such as AI and digital transformation.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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