Digital engineering services company EPAM Systems (NYSE: EPAM) will be announcing earnings results this Thursday before the bell. Here’s what you need to know.
EPAM beat analysts’ revenue expectations last quarter, reporting revenues of $1.41 billion, up 4.5% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter 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 1.7% year on year, slowing from the 19.4% 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 Q3 results, giving us a hint as to what we can expect. Gartner’s revenues decreased 1.3% year on year, beating analysts’ expectations by 1.2%, and Grid Dynamics reported revenues up 9.7%, topping estimates by 1.4%. Grid Dynamics traded up 40.1% following the results.
Read our full analysis of Gartner’s results here and Grid Dynamics’s results here.
Investors in the it services & consulting segment have had steady hands going into earnings, with share prices flat over the last month. EPAM is up 23% during the same time and is heading into earnings with an average analyst price target of $131.24 (compared to the current share price of $135.25).
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