The slight easing of Russia-Ukraine tensions gave a boost to shares of Epam Systems Tuesday. Epam stock surged more than 8% ahead of its earnings report on Thursday.
Russia's Defense Ministry on Tuesday said it had pulled back about 10,000 of 130,000 troops estimated to be positioned around Ukraine. However, large-scale military maneuvers continued.
The Newtown, Pa.-based custom software maker hires most of its developers in Eastern Europe, with most of its offshore centers in Belarus, Ukraine, Russia and Hungary.
Epam stock rose 8.1% to close at 462.54 on the stock market today. Shares had retreated some 32% in 2022.
Employee Contingents In Ukraine, Russia
A Susquehanna Financial report published on Feb. 1 noted a 10K regulatory filing for Epam stock in 2020. It showed a strong employee presence by the company in Ukraine and Russia.
"At that time, Epam indicated that of the approximately 41,000 employees of the company, 9,100 were based in Ukraine (22%) and 6,300 were based in Russia (15%)," the report said.
"But EPAM has grown its headcount substantially since then, adding headcount in diverse regions and onshore," the report said. "While this time may be different, we have seen EPAM navigate prior conflict through effective multisourcing, and their geographic footprint is more diversified."
Meanwhile, Arkadiy Dobkin has been Epam's chief executive since late 2002. Dobkin began his career in Belarus and Russia, where he worked at several software companies.
Dobkin co-founded Epam in 1993. Originally the company was called Effective Programming for America.
Epam Stock: Earnings Due Early Thursday
The information-technology services firm reports fourth-quarter earnings early Thursday. Analysts polled by FactSet estimate that earnings will jump 38% to $2.51 a share. Revenue is projected to rise 50% to $1.085 billion, including acquisitions.
In addition, the IBD Computer-Tech Services group that includes EPAM stock ranks No. 140 out of 197 industry groups tracked.
Epam provides custom software development and platform engineering services. It specializes in digital services, with customers adopting new technologies such as cloud computing or big data analytics. Google-parent Alphabet is one of Epam's biggest customers.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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