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Headquartered in Newtown, Pennsylvania, EPAM Systems, Inc. (EPAM) specializes in digital platform engineering and software development services. Valued at a market cap of $11.2 billion, the company offers a comprehensive suite of solutions, including software development, outsourcing, e-business services, enterprise relationship management, and content management. It is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Nov. 7.
Ahead of the event, analysts expect EPAM to report a profit of $2.09 per share on a diluted basis, down 6.3% from $2.23 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in each of its last four quarterly reports.
For the current year, analysts expect EPAM to report EPS of $8.08, down 6.2% from $8.61 in fiscal 2023.
EPAM stock has underperformed the S&P 500’s ($SPX) 21.5% gains on a YTD basis, with shares down 35% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 18.7% gains over the same time frame.
The company reported its Q2 earnings on Aug. 8, and its shares plunged 8.2%. This decline was attributed to reduced sales across most of its end markets and the adverse effects of a slowdown in IT spending. Investors were worried about the company’s lowered revenue guidance for fiscal 2024 too.
Analysts’ consensus opinion on EPAM stock is fairly 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 $227.84, indicating a potential upside of 18% from the current levels.
On the date of publication, Kritika Sarmah 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.
