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Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. Valued at $12.61 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions. The software engineering and product development services provider is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 8.
Ahead of the event, analysts expect EPAM to report a profit of $1.72 per share on a diluted basis, down 22.2% from $2.21 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect EPAM to report EPS of $7.81, down 9.3% from $8.61 in fiscal 2023.
EPAM stock has underperformed the S&P 500’s ($SPX) 15.9% gains on a YTD basis, with shares down 29.3% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 15.8% gains over the same time frame.
On Jul. 16, EPAM shares rose more than 5% after investment banking and capital markets firm Jefferies upgraded the stock to Buy from Hold.
On May 9, EPAM closed down more than 26% after cutting its full-year adjusted EPS estimate. It now expects its adjusted EPS to be between $10 and $10.30, down from a previous estimate of between $10 and $10.40. The company reported its Q1 results on May 9, with its adjusted EPS coming in at $3.06, beating Wall Street expectations of $2.32. The company’s revenue of $1.17 billion topped Wall Street forecasts of $1.16 billion.
For Q2, EPAM expects adjusted EPS to be between $2.21 and $2.29 and revenue between $1.14 billion and $1.15 billion. The company expects full-year revenue to be between $4.58 billion and $4.68 billion.
Analysts’ consensus opinion on EPAM stock is bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, nine give a “Hold” rating, and one recommends a “Moderate Sell.” The average analyst price target for EPAM is $228.95, indicating a potential upside of 5.3% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
