NYSE$EPAM

EPAM Systems Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

EPAM reported strong Q4 2019 results, with revenue up 25.3% year-over-year and EPS of $1.29.

EPAM Systems, Inc. announced its Q4 and full year 2019 results, demonstrating industry-leading organic growth. The company's Q4 revenues reached $632.8 million, a 25.3% increase year-over-year, with a GAAP diluted EPS of $1.29 and a non-GAAP diluted EPS of $1.51. The company remains confident in its ability to deliver relevant services in a competitive environment.

  • Revenues increased to $632.8 million, up 25.3% year-over-year.
  • GAAP income from operations was $84.7 million, an increase of 8.3%.
  • GAAP diluted EPS was $1.29, compared to $1.05 in the fourth quarter of 2018.
  • Non-GAAP diluted EPS was $1.51, an increase of 18.9%.

Headline financials

Total Revenue

$633M

Previous: $505M+25.3%
EPS (adj)

$1.51

Previous: $1.27+18.9%
Capital Expenditures

$47M

Previous: $10.1M+365.1%
Free Cash Flow

$77.6M

Previous: $113M-31.4%
Net Income

$74.5M

Previous: $60M+24.3%
Operating Income

$84.7M

Previous: $78.3M+8.3%
Gross Profit

$223M

Previous: $186M+19.8%
Cash & Equivalents

$937M

Previous: $771M+21.5%
Total Assets

$2.24B

Previous: $1.61B+39.2%
Stock-Based Comp

$19M

Previous: $12.5M+52.7%

Revenue & EPS history

EPAM · Revenue · Quarterly

$633M

Q4 2019+25.3%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The Company expects revenue growth for 2020 to exceed 22% on both a GAAP and constant currency basis and GAAP diluted EPS to be at least $5.56 for the full year, and non-GAAP diluted EPS to be at least $6.30 for the full year.

Tailwinds

  • The Company expects revenue growth for 2020 to exceed 22% on both a GAAP and constant currency basis
  • The Company expects GAAP income from operations to be in the range of 13% to 14% of revenues and non-GAAP income from operations to be in the range of 16% to 17% of revenues
  • The Company expects its GAAP effective tax rate to be approximately 14% and its non-GAAP effective tax rate to be approximately 23%
  • The Company expects GAAP diluted EPS to be at least $5.56 for the full year
  • The Company expects non-GAAP diluted EPS to be at least $6.30 for the full year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+1.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

58%

33 / 57 earnings

Positive

+15.5%

Q2 2022

Best reaction

-26.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-11.1%-8.3%
Q4 2025-17.9%-23.2%-18.0%
Q3 2025+4.4%+12.0%+26.5%
Q1 2025+12.9%+17.4%+11.9%
Q4 2024-12.8%-18.4%-32.1%
Q3 2024+15.2%+21.2%+21.1%
Q2 2024-7.2%-5.4%-1.6%
Q1 2024-26.4%-24.9%-29.0%
Q4 2023+12.2%+7.1%+7.5%
Q3 2023+11.1%+12.9%+19.5%
Q2 2023+4.3%+2.8%+9.1%
Q1 2023-14.3%-14.1%-4.0%
Q4 2022-7.7%-11.8%-23.7%
Q3 2022-4.4%-2.2%+13.1%
Q2 2022+15.5%+13.4%+11.4%
Q1 2022+11.0%+2.2%+6.3%
Q4 2021-1.6%-5.0%-34.6%
Q3 2021+3.7%+5.5%-12.2%
Q2 2021+5.1%+6.2%+13.1%
Q1 2021-0.2%-1.6%+4.6%
Q4 2020-4.0%-5.1%-3.1%
Q3 2020+4.1%-4.9%-1.2%
Q2 2020+1.3%+0.6%+7.5%
Q1 2020+0.1%-0.8%+6.8%
Q4 2019-3.6%-9.6%-30.0%
Q3 2019+6.1%+11.9%+17.7%
Q2 2019+3.8%+5.5%+7.3%
Q1 2019+0.4%-1.2%+3.7%
Q4 2018+3.4%+4.1%+13.3%
Q3 2018+5.7%+4.6%+9.0%
Q2 2018-4.9%-0.2%+8.7%
Q1 2018+9.6%+7.4%+6.8%
Q4 2017+1.4%+0.7%+6.1%
Q3 2017+10.0%+11.2%+9.3%
Q2 2017-1.3%-3.2%-2.9%
Q1 2017+3.5%+3.7%+10.0%
Q4 2016+4.3%+7.1%+7.7%
Q3 2016-1.6%+1.6%+1.2%
Q2 2016-5.0%-4.9%+0.8%
Q1 2016+0.5%
Q4 2015+8.7%
Q3 2015-8.9%
Q2 2015-5.0%
Q1 2015-0.8%
Q4 2014+6.9%
Q3 2014-2.4%
Q2 2014+5.1%
Q1 2014+6.3%
Q4 2013-7.6%
Q3 2013-1.5%
Q2 2013+7.1%
Q1 2013-0.1%
Q4 2012+4.4%
Q3 2012+8.1%
Q2 2012+4.4%
Q1 2012-11.8%
Q4 2011+8.0%
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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