EPAM Systems, Inc. Just Recorded A 7.3% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that EPAM Systems, Inc. (NYSE:EPAM) filed its second-quarter result this time last week. The early response was not positive, with shares down 7.6% to US$193 in the past week. The result was positive overall - although revenues of US$1.1b were in line with what the analysts predicted, EPAM Systems surprised by delivering a statutory profit of US$1.70 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for EPAM Systems

Taking into account the latest results, EPAM Systems' 24 analysts currently expect revenues in 2024 to be US$4.61b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 3.3% to US$7.30. In the lead-up to this report, the analysts had been modelling revenues of US$4.62b and earnings per share (EPS) of US$7.37 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$221, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values EPAM Systems at US$275 per share, while the most bearish prices it at US$188. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.9% annually for the foreseeable future. It's pretty clear that EPAM Systems' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$221, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple EPAM Systems analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the EPAM Systems Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.