- EPAM Systems has raised its forecast for full-year adjusted EPS to a range of $10.96 to $11.12, previously pegged at $10.70 to $10.95. Analysts had estimated $10.83.
- The company projects full-year revenue growth to be between 13% to 15%.
- For the third quarter, EPAM anticipates adjusted EPS between $2.98 to $3.06, above the estimated $2.88.
- Third-quarter revenue is expected to be between $1.37 billion to $1.38 billion, surpassing the estimate of $1.35 billion.
- In the second quarter, EPAM reported an adjusted EPS of $2.77, compared to $2.45 year-over-year and beating the $2.61 estimate.
- Second-quarter revenue reached $1.35 billion, marking an 18% increase year-over-year and exceeding the $1.33 billion estimate.
- The company attributes its adjusted forecasts to strong organic constant currency revenue growth and updated foreign exchange rate assumptions.
- EPAM expects operating income for the year to be between 9% to 10% of revenues for GAAP, and 14.5% to 15.5% for non-GAAP.
- No significant exposure to traditional legacy outsourcing services is noted in EPAM’s client portfolio.
- The investment community currently holds 14 buy ratings, 5 hold ratings, and 0 sell ratings on EPAM stocks.
Epam Systems on Smartkarma
Analyst coverage of Epam Systems on Smartkarma reveals insightful research by Baptista Research. In their report titled “EPAM Systems Unleashes Dual Revenue Engine—Can Organic & Inorganic Strategies Deliver The Targeted 14.5% Growth?“, they highlight the strong first-quarter 2025 financial performance of EPAM Systems despite economic challenges. The planned leadership transition with Arkadiy Dobkin stepping down as CEO in favor of Balazs Fejes, a key figure in the company’s expansion, signifies a strategic move towards maintaining leadership in AI-driven transformation.
Furthermore, Baptista Research‘s report “EPAM Systems: AI, Cloud & Expansion—Is This the Next IT Powerhouse?” delves into the mixed performance of EPAM Systems in the fourth quarter and full-year 2024. Despite experiencing 7.9% revenue growth due to recent acquisitions, like NEORIS and First Derivative, the company achieved modest organic growth of 1% year-over-year in constant currency terms, marking a return to organic growth after a period of stagnation since early 2023.
A look at Epam Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
EPAM Systems, Inc. provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions. According to Smartkarma Smart Scores, Epam Systems shows a mixed long-term outlook. While the company scores moderately in terms of value and growth prospects, with scores of 3 each, its dividend score is relatively low at 1. However, Epam Systems excels in resilience and momentum, with scores of 4 and 3 respectively, indicating a strong ability to withstand challenges and maintain positive stock price momentum over time.
Considering the Smartkarma Smart Scores for Epam Systems, investors may find confidence in the company’s ability to weather market volatility and sustain growth momentum in the long run. With a solid resilience score of 4 and a respectable momentum score of 3, coupled with moderate value and growth scores, Epam Systems appears well-positioned to deliver steady performance and navigate changing market conditions effectively.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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