Digital engineering services company EPAM Systems (NYSE:EPAM) will be reporting earnings this Thursday before market open. Here’s what to expect.
EPAM met analysts’ revenue expectations last quarter, reporting revenues of $1.4 billion, up 7.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ full-year EPS guidance estimates but revenue guidance for next quarter slightly missing 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, the market is expecting EPAM’s revenue to grow 3.9% year on year, slowing from the 18% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. EPAM has a history of exceeding Wall Street’s expectations.
Looking at EPAM’s peers in the it services & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Gartner posted flat year-on-year revenue, beating analysts’ expectations by 1.8%, and Everforth reported a revenue decline of 1.3%, topping estimates by 1.6%. Everforth traded up 17.8% following the results.
Read our full analysis of Gartner’s results here and Everforth’s results here.
There has been positive sentiment among investors in the it services & consulting segment, with share prices up 7.8% on average over the last month. EPAM is up 26.8% during the same time and is heading into earnings with an average analyst price target of $133.94 (compared to the current share price of $110.10).
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