EPAM Sets Sight on Generative AI Growth After Q4 Earnings Outperform Analyst Predictions
Portfolio Pulse from Anusuya Lahiri
EPAM Systems, Inc. (NYSE:EPAM) reported Q4 FY23 sales of $1.16 billion, surpassing analyst estimates and showing a 6.0% year-on-year decline. Adjusted EPS was $2.75, beating the consensus of $2.50. The company is focusing on Generative AI growth after restructuring its delivery platforms. For Q1, EPAM forecasts revenues between $1.155 billion and $1.165 billion, with adjusted EPS of $2.26 to $2.34, slightly below the estimated $2.39. 2024 revenue growth is expected to be 1% to 4%, with adjusted EPS projected at $10.00 to $10.40. Needham and Piper Sandler have maintained positive ratings on EPAM, raising their price targets to $350 and $369, respectively. EPAM shares rose 7.77% to $299.75.
February 15, 2024 | 5:36 pm
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POSITIVE IMPACT
EPAM Systems, Inc. reported higher than expected Q4 FY23 sales and EPS, with a strategic focus on Generative AI growth. Analysts remain bullish, raising price targets.
EPAM's better-than-expected Q4 earnings and positive outlook on Generative AI growth, along with bullish analyst ratings and raised price targets, indicate a strong short-term positive impact on its stock price. The company's strategic focus and financial performance have been well-received by the market, as reflected in the 7.77% increase in share price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100