Why EPAM Systems (EPAM) Shares Are Sliding Today - EPAM Systems (NYSE:EPAM)

EPAM Systems Inc EPAM shares down Friday morning following its Q1 results. The company provided a lackluster Q2 forecast and also reduced its FY23 outlook.
EPAM reported first-quarter FY23 sales growth of 3.4% year-on-year to $1.21 billion, matching the analyst consensus estimate.
On an organic constant currency basis excluding the impact of the exit from Russia, revenues were up 7.0%.
Non-GAAP income from operations was $178.3 million, down 5.5% Y/Y. The non-GAAP operating margin contracted 140 bps to 14.7%.
Non-GAAP EPS of $2.47 beat the consensus of $2.34.
EPAM held $1.75 billion in cash and equivalents as of March 31, 2023. Cash provided by operating activities for the quarter was $87.3 million.
Outlook: For Q2, EPAM expects revenues of $1.195 billion-$1.205 billion, against the Street view of $1.26 billion. Adjusted EPS of $2.38-$2.46 versus an estimate of $2.48.
EPAM cuts FY23 revenue outlook from $5.25 billion to $4.95 billion-$5.0 billion versus an estimate of $5.25 billion.
EPAM reduced FY23 adjusted EPS guidance from $11.15-$11.35 to $10.60-$10.80 with an estimate of $11.2.
Price Action: EPAM shares traded lower by 5.70% at $255.00 premarket Friday.

Momentum21.75

Growth48.27

Quality63.11

Value63.17

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Why EPAM Systems Shares Are Sliding Today