EPAM earnings: what to look for from EPAM

What happened

EPAM Systems, a digital engineering services company, is scheduled to announce earnings this Thursday before the bell. Last quarter, revenue rose 4.5% year on year to $1.41 billion and beat analysts’ expectations, while next-quarter revenue guidance fell short. Analysts expect current-quarter revenue growth of 1.7%.

Confirmed

Global impact / market context

The key issue is whether EPAM can meet or exceed the 1.7% revenue growth analysts expect. Slower growth could limit revenue expansion and put pressure on investor expectations; stronger results or guidance could ease concern about the slowdown, though the article gives no earnings outcome yet.

Analyst inference

The article describes mixed recent evidence: EPAM beat last quarter’s revenue and earnings-per-share estimates, but its next-quarter revenue guidance disappointed. Analysts have generally kept their estimates unchanged recently. Results from peers varied, with Gartner’s revenue declining and Grid Dynamics’ revenue growing.

Confirmed

What to watch

1. Compare reported revenue with the 1.7% year-on-year growth analysts expect; a shortfall would indicate weaker near-term sales than the current forecast assumes. Analyst inference
2. Check whether EPAM’s new revenue guidance meets analysts’ expectations, since last quarter’s guidance fell short even as reported revenue beat estimates. Analyst inference
3. Observe whether the company reports earnings before the bell this Thursday, as stated in the article; no result or updated guidance is provided here. Confirmed

Evidence

• stockstory.org