Benzinga | May 6, 2021 01:21PM EDT

EPAM Beats On Q1 Earnings, Expands Operating Margin, Issues Robust Q2 Guidance

* EPAM Systems Inc (NYSE: EPAM) reported first-quarter FY21 revenue growth of 19.9% year-on-year to $780.8 million, beating the analyst consensus of $764.57 million. Acquisitions completed in the last year generated 0.3% of the revenues.

* Non-GAAP operating income rose 30% Y/Y to $136.9 million, with margins expanding 130 basis points to 17.53%.

* Non-GAAP diluted EPS of $1.81 beat the analyst consensus of $1.68.

* EPAM generated $12.8 million in operating cash flow and held $1.4 billion in cash and equivalents.

* Guidance: EPAM sees a Q2 revenue outlook of $853 million - $861 million, above the analyst consensus of $791.34 million, Non-GAAP EPS outlook of $1.88 - $1.95, above the analyst consensus of $1.74.

* The strong start to 2021 highlights the rapid pace of digital transformation, application modernization, and the need for new business models across industries, CEO Arkadiy Dobkin said.

* Price action: EPAM shares traded lower by 1.48% at $454.47 on the last check Thursday.