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Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) is a leading global provider of digital engineering, cloud and AI-enabled transformation services. It also provides business and experience consulting to numerous global enterprises and ambitious startups. With a market cap of $13.5 billion, EPAM’s operations span the Americas, Indo-Pacific, and the EMEA region. It is set to unveil its fourth-quarter results before the market opens on Thursday, Feb. 20.
Ahead of the event, analysts expect EPAM to report a non-GAAP profit of $2.17 per share, down nearly 4% from $2.26 per share reported in the year-ago quarter. However, the company has surpassed Wall Street’s earnings projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 26% year-over-year to $2.81, exceeding the consensus estimates by 34.5%.
For the full fiscal 2024, EPAM is expected to deliver an adjusted EPS of $8.58, marginally down from $8.61 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase 4.1% year-over-year to $8.93 per share.
EPAM stock prices have plummeted 21.2% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 25.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 20.1% gains during the same time frame.
Despite underperforming over the past year, EPAM stock has observed notable gains recently and surged 18.9% over the past three months. EPAM stock prices soared 14.9% and remained in green for the next four trading sessions after the release of its impressive Q3 results on Nov. 7. The company is observing an ongoing improvement across its business and reported a 1.3% year-over-year growth in revenues, reaching $1.2 billion, which surpassed Wall Street’s topline expectations by a notable 1.5%. Moreover, the company has observed a robust improvement in profitability with its net income surging 40.3% year-over-year to $136.3 million.
Additionally, EPAM’s recent acquisition of NEORIS demonstrates its strong commitment towards diversifying its global delivery platform and readiness to enter new markets to best serve its enterprise clients. Furthermore, observing the robust performance during the quarter, EPAM raised its full-year revenues and earnings guidance, bolstering investor confidence.
The consensus opinion on EPAM stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, 11 recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and one advocates a “Moderate Sell” rating. Its mean price target of $260.83 indicates a 10.8% upside potential from current price levels.
