EPAM Systems Stock Gains On Q3 Beat, Solid Outlook

EPAM Systems Inc EPAM reported third-quarter FY21 revenue growth of 51.6% year-on-year to $988.5 million, beating the consensus of $964.1 million. Acquisitions completed in the last twelve months contributed 5.0% to revenue growth.
Non-GAAP income from operations was $179.6 million, up 45.7% Y/Y. The non-GAAP operating margin contracted 70 bps to 18.2%.
Non-GAAP EPS of $2.42 beat the consensus of $2.22.
EPAM generated $287.7 million in operating cash flow for the nine months ended September 30. EPAM held $1.4 billion in cash and equivalents.
Outlook: EPAM sees Q4 revenue of $1.075 billion - $1.085 billion, above the consensus of $1.04 billion. It sees non-GAAP EPS of $2.44 - $2.51, above the consensus of $2.34.
EPAM raised FY22 non-GAAP EPS guidance from $8.25 - $8.44 to $8.72 - $8.79, above the consensus of $8.42.
The company expects revenue growth for FY21 to be at least 40% on a GAAP basis (prior view at least 37%).
Price Action: EPAM shares traded higher by 3.31% at $702.45 on the last check Thursday.

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