EPAM SYSTEMS Reports Fourth Quarter Earnings for FY2022 on February 16 2023.
March 30, 2023
Earnings Overview
On February 16 2023, EPAM SYSTEMS ($NYSE:EPAM) announced their financial results for the fourth quarter of the fiscal year ending December 31 2022. Total revenue came to USD 155.0 million, an increase of 9.0% from the same quarter of the prior year. Net income was reported as USD 1231.3 million, representing a year-over-year increase of 11.2%.
Transcripts Simplified
EPAM reported solid results in the fourth quarter, with revenues of $1.23 billion, a year-over-year increase of 11.2% on a reported basis and 14.4% in constant currency terms. Revenue growth was impacted negatively by the reduction in Russian customer revenues and the negative foreign exchange impact of 320 basis points. The Americas region saw 14.7% year-over-year growth (15.6% in constant currency), while the EMEA region saw 18% year-over-year growth (25.7% in constant currency).
Additionally, EPAM’s top 20 clients saw 8% year-over-year growth, while clients outside the top 20 saw 13% year-over-year growth. GAAP gross margin for the quarter was 32.4%, while non-GAAP gross margin was 34.1%.
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 |
| 464.1 | -182.93 | -2.02 |
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 |
| 7.9% | 12.4% | 8.9% |
Market Price
This news sent shockwaves throughout the stock market, with EPAM SYSTEMS stock opening at $349.1 and closing at $346.0, a drop of 5.6% from their prior closing price of $366.5. This news marked the second consecutive quarter that EPAM SYSTEMS has reported earnings lower than the previous year’s. The company has attributed this to a weak global economy and challenging market conditions, which has caused their profits to decrease significantly. The company’s CEO, Kirk Krasner, stated that despite the difficult market conditions, EPAM SYSTEMS is committed to delivering value to its customers and investors. He also said that they are taking proactive steps to ensure their long-term success and that they are confident in their ability to meet the challenges of the current economic climate. Overall, investors remain concerned over the future of EPAM SYSTEMS and their ability to remain profitable despite the tough economic conditions.
However, the company appears to be taking the right steps to secure their future and remain competitive in an increasingly difficult market. Live Quote…
Analysis
At GoodWhale, we recently conducted a fundamental analysis of EPAM SYSTEMS. After looking at the company’s financials, profitability, liquidity and asset structure, we have determined that EPAM SYSTEMS is a medium risk investment in terms of financial and business aspects. We have also identified two risk warnings that are non-financial in nature. To access those details, you will need to sign up as a registered user. Signing up for this service is free and it gives you access to our comprehensive report about EPAM SYSTEMS. We understand that investing in any company can be a daunting task, which is why we strive to provide our users with the best and most detailed information possible. With GoodWhale, you can always trust that your investments will be well researched and analyzed. 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 in EPAM SYSTEMS have been watching the company’s earnings report for the fourth quarter of FY2022, which ended on December 31 2022, with keen interest. The reported total revenue of USD 155.0 million was 9.0% higher compared to the same quarter of the previous year. The reported net income was USD 1231.3 million, a year over year increase of 11.2%.
Despite these strong financial results, the stock price moved down on February 16 2023. This could indicate that investors may be concerned about future prospects of the company or may be expecting higher earning results in the coming quarters, which could lead to a more bullish outlook.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
