EPAM Systems Reports Growth Amidst Market Underperformance

EPAM Systems, Inc. has shown impressive third-quarter earnings, including a 1.3% revenue growth and a 14.3% surging adjusted EPS, despite underperforming the market previously. The company has raised its full-year guidance, signaling a positive outlook to investors.

Date: 29-11-2024

AI Rating: 7

EPAM Systems, Inc., recognized for its digital engineering and consulting services, has recently showcased a notable performance in its Q3 earnings. The company reported a 1.3% year-over-year growth in revenues, with total revenues reaching $1.2 billion, surpassing Wall Street’s expectations by 1.5%. Additionally, there was a significant improvement in profitability, with the adjusted EPS soaring 14.3% year-over-year to $3.12, again beating analysts’ projections.

In a bid to strengthen its market position, EPAM's recent acquisition of NEORIS underscores its strategy for diversifying its global delivery platform, further preparing it for new market entry.

Moreover, EPAM has raised its full-year earnings and revenue guidance, which could enhance investor confidence significantly.

Despite these achievements, predictions for the current fiscal year indicate that EPAM's profits may experience a slight decline to $8.58 per share. Nevertheless, the company has demonstrated a robust history of exceeding earnings estimates, having surpassed analysts’ expectations for the past four quarters.

The consensus “Moderate Buy” rating from analysts suggests confidence in EPAM’s future performance, a sentiment bolstered by the recent upgrade from Scotiabank analyst to “Outperform” with a price target indicating an 11.9% upside potential.

Stocks: EPAM