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Sep 30, 2020
EPAM Q3 2020 Earnings Report
EPAM's third quarter performance was solid, driven by an improving demand environment and the expansion of the Company's capabilities.
Key Takeaways
EPAM Systems reported revenues of $652.2 million, a 10.9% year-over-year increase. GAAP diluted EPS was $1.53, and non-GAAP diluted EPS was $1.65.
Revenues increased to $652.2 million, a year-over-year increase of 10.9%.
GAAP income from operations was $96.4 million, a 19.6% increase year-over-year.
Non-GAAP income from operations was $123.3 million, a 23.6% increase year-over-year.
GAAP diluted EPS was $1.53, a 31.9% increase year-over-year.
Forward Guidance
The Company expects revenues to be in the range of $695 million to $705 million for the fourth quarter, reflecting a year-over-year growth rate of approximately 10.6% at the mid-point of the range.
Positive Outlook
- Revenues will be in the range of $695 million to $705 million for the fourth quarter.
- The revenue growth rate is expected to be approximately 10.6% at the mid-point of the range.
- GAAP income from operations is expected to be in the range of 14% to 15% of revenues.
- Non-GAAP income from operations is expected to be in the range of 17.5% to 18.5% of revenues.
- GAAP diluted EPS will be in the range of $1.44 to $1.54 for the quarter, and non-GAAP diluted EPS will be in the range of $1.63 to $1.73 for the quarter.
Challenges Ahead
- GAAP effective tax rate is expected to be approximately 15%.
- Non-GAAP effective tax rate is expected to be approximately 23%.
- Weighted average diluted shares outstanding for the quarter is expected to be 58.9 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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