EPAM Systems Faces Rough Waters Ahead; Stock Tanks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2024
0mins
Source: Benzinga
EPAM Systems, Inc. FY24 Q1 Results:
- Sales declined 3.8% Y/Y to $1.165 billion, beating analyst estimates.
- Adjusted income from operations was $173.6 million, down 2.6% Y/Y.
- Adjusted EPS of $2.46, down 0.4% Y/Y, exceeded consensus expectations.
- Operating cash flow in the quarter was $129.9 million.
- CEO mentioned adaptability to challenging demand environment.
Outlook for EPAM Systems, Inc.:
- Second-quarter revenue expected at $1.135 billion-$1.145 billion, below consensus.
- Adjusted EPS outlook for Q2 is $2.21-$2.29 compared to an estimated $2.44.
- FY24 revenue outlook revised to $4.575 billion-$4.675 billion.
- Adjusted EPS guidance for FY24 adjusted to $10.00-$10.30.
- Stock exposure available through Vesper US Large Cap Short-Term Reversal Strategy ETF UTRN.
Analyst Views on EPAM
Wall Street analysts forecast EPAM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPAM is 214.70 USD with a low forecast of 170.00 USD and a high forecast of 246.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 219.050
Low
170.00
Averages
214.70
High
246.00
Current: 219.050
Low
170.00
Averages
214.70
High
246.00
About EPAM
EPAM Systems, Inc. is a global provider of digital engineering, cloud and AI-enabled transformation services, and is a business and experience consulting partner for global enterprises and startups. The Company addresses its clients’ transformation challenges by fusing EPAM Continuum’s integrated strategy, experience and technology consulting. Through platforms like EPAM AI/RUN and initiatives like DIALX Lab, the Company integrates advanced AI technologies into tailored business strategies, driving industry impact and fostering continuous innovation. Its strategy services include optimizing for growth, talent enablement, mergers & acquisitions, project to product, generative AI advisory, and transformative research & insights. Its engineering services include platform & product development, agile ways of working, quality engineering, open source, and metaverse. It serves various industries, including financial services; telecom, media & entertainment, and life sciences & healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
