EPAM Q3 Earnings: Beats Expectations, Rising Margins, CEO Flags NEORIS Acquisition

EPAM Systems, Inc EPAM reported fiscal third-quarter 2024 sales grew 1.3% year over year to $1.17 billion, beating the analyst consensus estimate of $1.15 billion.

Adjusted EPS of $3.12 beat the analyst consensus estimate of $2.70. The stock price climbed after the print.

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Operating margin grew to 15.2% from 9.9% in the year-ago. 

Adjusted income from operations grew by 14% year over year. The margin grew 210 bps to 19.1%.

Cash and equivalents totaled $2.04 billion as of September-end, a decrease of 0.1% from $2.04 billion as of December-end. The company’s long-term debt totaled $25.33 million.

CEO Arkadiy Dobkin highlighted the company’s role in helping clients modernize through advanced solutions, including GenAI capabilities. Dobkin noted that the recent acquisition of NEORIS underscores EPAM’s commitment to diversifying its global delivery platform and expanding into new markets to better serve enterprise clients.

Outlook: EPAM Systems lowered its fiscal 2024 revenue outlook to $4.685 billion-$4.695 billion (prior $4.590 billion-$4.625 billion) versus the consensus of $4.62 billion. The company also revised the fiscal 2024 outlook for adjusted EPS to $10.73-$10.81 (prior $10.20-$10.40) versus the consensus of $10.29.

EPAM Systems expects fourth-quarter revenue of $1.205 billion-$1.215 billion versus consensus of $1.150 billion and adjusted EPS of $2.70-$2.78 versus consensus of $2.70.

Price Action: EPAM stock is up 16.6% to $235.50 at last check Thursday.

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