These Analysts Increase Their Forecasts On EPAM Systems After Upbeat Earnings

EPAM Systems, Inc EPAM reported upbeat fourth-quarter financial results and issued strong first-quarter revenue guidance.

EPAM Systems reported a fourth-quarter FY23 sales decline of 6.0% year-on-year to $1.16 billion, beating the analyst consensus estimate of $1.14 billion. Adjusted EPS of $2.75 beat the consensus of $2.50, according to data from Benzinga Pro.

"EPAM's performance in 2023 reflects our ability to successfully navigate a volatile demand and macro-economic environment," said Arkadiy Dobkin, CEO & President, EPAM. "After rebalancing the majority of our delivery platforms across Europe, India, Asia and Latin America, and refining our growth strategy, we are now focused on harmonizing our delivery quality, optimizing cost-effectiveness, and proactively leveraging our extensive data, engineering and consulting experience to capitalize on Generative AI opportunities."

For the first quarter, EPAM expects revenues of $1.155 billion-$1.165 billion, against the consensus of $1.15 billion, and an adjusted EPS of $2.26 – $2.34 versus an estimated $2.39. The company EPAM expects 2024 revenue growth of 1% – 4% or $4.74 billion – $4.88 billion versus an estimate of $4.86 billion. It projects 2024 adjusted EPS of $10.00 – $10.40 with an estimated $10.56.

EPAM shares gained 7.8% to trade at $300.01 on Thursday.

These analysts made changes to their price targets on EPAM after the company reported quarterly results.

• Piper Sandler boosted the price target on EPAM from $339 to $369. Piper Sandler analyst Arvind Ramnani maintained an Overweight rating.
• Needham increased the price target on EPAM from $295 to $350. Needham analyst Mayank Tandon maintained a Buy rating.

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