NEWTOWN, Pa. - EPAM Systems, Inc. (NYSE: EPAM), a leading global provider of digital transformation services, reported first-quarter earnings that surpassed analyst expectations but provided guidance that fell short of Wall Street estimates, sending its shares down 4.9%.
For the first quarter ended March 31, 2024, EPAM announced revenues of $1.165 billion, a decline of 3.8% YoY. The company's adjusted EPS for the quarter was $2.46, slightly down by $0.01 from the same period last year but $0.15 ahead of the analyst consensus of $2.31. Despite the earnings beat, the company's revenue matched the consensus estimate of $1.16 billion.
EPAM's CEO & President, Arkadiy Dobkin, commented on the results, stating, "Our solid performance in the first quarter of 2024 reflects our level of adaptability to a challenging demand environment." He acknowledged the unexpected market conditions and the company's efforts to refine operations and invest in technology and talent.
Looking ahead, EPAM provided second-quarter guidance with expected EPS in the range of $2.21 to $2.29, below the analyst consensus of $2.44. Revenue forecasts for Q2 are set at $1.13 to $1.14 billion, also under the consensus estimate of $1.17 billion. For the full year 2024, the company anticipates adjusted EPS between $10.00 and $10.30, compared to the consensus of $10.17, and revenue projections of $4.57 to $4.67 billion, which is below the expected $4.81 billion.
EPAM's financial position remains strong, with $1.990 billion in cash, cash equivalents, and restricted cash as of March 31, 2024. The company also continued its share repurchase program, buying back 396 thousand shares for $120.6 million in the first quarter.
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