In the second quarter ended June 30, 2019, EPAM posted quarterly revenue of $551.6M, a year-over-year increase of 23,8%. This topped the company’s forecast of $549 in May’s Q1 report. Shares dropped at the start of the quarter, but then recovered.
- Quarterly revenue grew $105.9M year-over-year;
- GAAP income from operations was $72.9M, an increase of $18.6M, or 34,4% YoY;
- Non-GAAP income from operations was $92.6M, an increase of $20.3M, or 28,0% YoY;
- Revenue for 2019 is expected to grow by at least 23%;
- Revenue for Q3 is projected at $579M;
- The total headcount was approximately 33,100 as of June 30, 2019, an increase of 21% from June 30, 2018.
Shares plummet, outside EPAM’s control
In January, EPAM stock was trading at $121, and by March the price had jumped to $155 per share. Analysts at Cowen predict that the stock assets of the largest software developer in Eastern Europe will reach $210 at some point in the near future.
In late July, EPAM shares soared to a record $200.82, ahead of the quarterly predictions, but fell to $173.18 early August. So what took the shine off EPAM?
«On August 1, Donald Trump tweeted that the US would start putting an additional 10% tariff on Chinese-manufactured goods and products. (China’s exports to the US falling under the tariff amount to $300B. — dev.by.) The news threw the market into turmoil and pushed everyone to sell. This triggered an imminent slump which had nothing to do with EPAM, ” explains businessman and investor Kirill Golub.
«[It was caused by] a massive sell-off on the US stock market, ” he adds.
EPAM stock has been showing a steady growth recently. The company’s share price is now trading at $188.95, up 4,67%.
See the full report here.
$44+ million worth of stock sold in July
In July 2019, EPAM СЕО and co-founder Arkadiy Dobkin sold 252.8K of the company’s shares for $44.4M, leaving another 1.44M worth of shares for himself.
In total, EPAM insiders sold $63M worth of securities during Q2.
- CMO Elaina Shekhter sold 7,801 shares in May, raising $1.335M;
- SVP Jason Harman sold 13.6K shares, garnering $2.349M;
- Independent Non-Executive Director Richard Michael Mayoras netted $589K for his 3.4K shares;
- VP Gary Abrahams sold a modest 361 shares worth $63K.
Following the deals, EPAM insiders hold a little over 5% of the software developer’s stock.
As for the rest of the investors, in July, third-party companies bought and sold $111M and $17M in EPAM stock, respectively.
Per the May-quarter report, EPAM Systems’ net margin was 12,19%. Its quarterly revenues of $521.3M beat analysts’ estimates of $519.11M, up 22,9% YoY.
Here is a full breakdown of EPAM stock prices for the previous quarters: