Digital engineering services company EPAM Systems (NYSE: EPAM) will be reporting results this Thursday before market open. Here’s what investors should know.
EPAM beat analysts’ revenue expectations last quarter, reporting revenues of $1.41 billion, up 12.8% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ full-year EPS guidance estimates.
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 7.5% year on year, slowing from the 11.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Gartner’s revenues decreased 1.5% year on year, meeting analysts’ expectations, and IBM reported revenues up 9.5%, topping estimates by 1.4%. IBM traded down 8.3% following the results.
Read our full analysis of Gartner’s results here and IBM’s results here.
There has been positive sentiment among investors in the it services & consulting segment, with share prices up 11% on average over the last month. EPAM is down 20.4% during the same time and is heading into earnings with an average analyst price target of $183.18 (compared to the current share price of $109.13).
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