Digital engineering services company EPAM Systems (NYSE: EPAM) will be reporting results this Thursday morning. Here’s what investors should know.
EPAM beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.35 billion, up 18% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter beating analysts’ expectations.
Is EPAM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting EPAM’s revenue to grow 17.8% year on year to $1.37 billion, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EPAM has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.
Looking at EPAM’s peers in the it services & consulting segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gartner delivered year-on-year revenue growth of 2.7%, meeting analysts’ expectations, and IBM reported revenues up 9.1%, topping estimates by 1.4%. IBM traded down 1.1% following the results.
Read our full analysis of Gartner’s results here and IBM’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the it services & consulting stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. EPAM is up 5% during the same time and is heading into earnings with an average analyst price target of $202.06 (compared to the current share price of $160.14).
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