EPAM SYSTEMS Reports 9.0% Increase in Q4 Earnings of USD 155.0 Million for FY2022.
March 7, 2023
Earnings Overview
On February 16 2023, EPAM SYSTEMS ($NYSE:EPAM) announced their fiscal year 2022 fourth quarter earnings results, showing a 9.0% increase in total revenue to USD 155.0 million compared to the same period in 2021. Net income was up 11.2%, reaching USD 1231.3 million.
Transcripts Simplified
In the fourth quarter EPAM generated revenues of $1.23 billion, a year-over-year increase of 11.2% on a reported basis and 14.4% in constant currency terms. The top 20 clients grew 8% year-over-year while non top 20 clients grew 13%. GAAP gross margin for the quarter was 32.4% compared to 34.3% in Q4 2021, and non-GAAP gross margin was 34.1% compared to 35.9% in Q4 2021.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Epam Systems. More…
| Total Revenues | Net Income | Net Margin |
| 4.82k | 419.42 | 10.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Epam Systems. More…
| Operations | Investing | Financing |
| 562.65 | -368.92 | -59.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Epam Systems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.01k | 1.01k | 52.06 |
Key Ratios Snapshot
Some of the financial key ratios for Epam Systems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.1% | 23.7% | 11.9% |
| FCF Margin | ROE | ROA |
| 9.2% | 12.4% | 8.9% |
Market Price
Despite the impressive earnings report, EPAM SYSTEMS stocks dropped 5.6%, opening at $349.1 and closing at $346.0, a decrease from the last closing price of 366.5. The increase in net income is attributed to the company’s recent investments in digital and cloud services, which has helped boost the company’s profitability and market share.
Additionally, EPAM SYSTEMS has reported significant cost-cutting initiatives that have led to cost optimization and more efficiency in their operations. The company also noted that their increased focus on customer experience and product innovation had led to more loyal customers and improved customer satisfaction. This is expected to contribute to further growth in both sales and profits for the company in the coming quarters. Overall, EPAM SYSTEMS has reported strong earnings for the fourth quarter of FY2022, and investors remain optimistic about the company’s future prospects. With continued investments in digital services, cost optimization, product innovation, and customer experience, EPAM SYSTEMS is set to benefit further in the upcoming quarters. Live Quote…
Analysis
GoodWhale conducted an analysis of EPAM SYSTEMS‘s wellbeing and the results showed that this company is classified as a ‘gorilla’ in the Star Chart. This type of company has achieved a stable and high revenue or earning growth due to its strong competitive advantage. Such companies may be attractive to investors who are looking for a more secure long-term investment option. EPAM SYSTEMS scored a 10/10 in terms of cashflows and debt, suggesting that the company is in good financial health and is capable to safely ride out any crisis without the risk of bankruptcy. GoodWhale also identified that EPAM SYSTEMS is strong in asset, growth, and profitability, but weak in dividend. This could be an attractive option for investors who are looking for growth without a large income stream. More…
Peers
The company has over 25,000 employees and clients in over 90 countries. EPAM Systems Inc. has been ranked as one of the world’s largest and fastest-growing outsourcing companies by several magazines. The company’s main competitors are Tranway Technologies Ltd, Mahaveer Infoway Ltd, and Indata SA.
– Tranway Technologies Ltd ($BSE:542923)
Tranway Technologies is a leading provider of transportation solutions. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation. Tranway’s products and services are designed to improve the efficiency and safety of transportation operations. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation.
– Mahaveer Infoway Ltd ($BSE:539383)
Mahaveer Infoway Ltd is a company that provides information technology services. It has a market cap of 35.64M as of 2022 and a return on equity of 5.35%. The company offers services such as software development, web development, and e-commerce solutions. It also provides IT consulting and support services. The company has its headquarters in Bangalore, India.
Summary
Investors responded negatively to EPAM SYSTEMS‘ FY2022 Q4 earnings report, released on February 16 2023. Despite the company’s total revenue increasing 9.0% year-over-year to USD 155.0 million, and net income rising 11.2% to USD 1231.3 million, the stock price dropped on the day of the report’s release. Analysts attribute this to expectations that have not been met, indicating that investors are concerned about the company’s future prospects. Moving forward, investors will be closely monitoring EPAM SYSTEMS’ upcoming quarterly results and any changes in company strategy to determine whether their current share price represents a good buying opportunity.
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