Epam Systems' Q2 revenue beats estimates, raises outlook
Overview
Epam Q2 revenue rises 18% yr/yr, beating analyst expectations, per LSEG data
Non-GAAP diluted EPS for Q2 beats consensus, rising to $2.77, per LSEG data
Co raises full-year revenue growth outlook to 13-15% for 2025
Outlook
EPAM raises full-year revenue growth forecast to 13%-15%
Company expects Q3 revenue between $1.365 bln and $1.380 bln
EPAM sees full-year GAAP diluted EPS $6.48-$6.64
Company anticipates Q3 non-GAAP diluted EPS $2.98-$3.06
Result Drivers
AI SOLUTIONS - Co attributes strong performance to demand for AI-led solutions and modernization efforts, per CEO Arkadiy Dobkin
CLIENT PORTFOLIO - Distinct client portfolio with no material exposure to traditional legacy outsourcing services seen as a strength
ORGANIC GROWTH - Sequential organic growth and AI momentum cited as key drivers for revenue increase, per President Balazs Fejes
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.35 bln | $1.33 bln (13 Analysts) |
Q2 Adjusted EPS | Beat | $2.77 | $2.61 (15 Analysts) |
Q2 EPS |
| $1.56 |
|
Q2 Adjusted Income from Operations | Beat | $202.90 mln | $192.50 mln (12 Analysts) |
Q2 Income from Operations |
| $126.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Epam Systems Inc is $215.00, about 29.6% above its August 6 closing price of $151.31
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nPn2Tfc80a
