EPAM Systems (NYSE: EPAM ) reported earnings on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EPAM Systems beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share contracted significantly.
Gross margins increased, operating margins dropped, net margins dropped.
EPAM Systems reported revenue of $125.5 million. The two analysts polled by S&P Capital IQ foresaw revenue of $117.0 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $95.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The two earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.32 for Q4 were 37% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.4%, 80 basis points better than the prior-year quarter. Operating margin was 14.9%, 130 basis points worse than the prior-year quarter. Net margin was 11.9%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.3 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $519.6 million. The average EPS estimate is $1.43.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 19 members out of 23 rating the stock outperform, and four members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give EPAM Systems a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EPAM Systems is outperform, with an average price target of $24.08.
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