EPAM Systems Expects FY24 Revenue of $4.575B-$4.675B (Prior $4.74B-$4.88B) Vs $4.81B Est, Adj EPS of $10.00-$10.30 (Prior $10.00-$10.40) Vs $10.18 Est
Portfolio Pulse from Benzinga Newsdesk
EPAM Systems has revised its FY24 revenue forecast to $4.575B-$4.675B, down from the previous $4.74B-$4.88B, against a $4.81B estimate. The adjusted EPS forecast is now $10.00-$10.30, slightly adjusted from $10.00-$10.40, compared to a $10.18 estimate. This revision reflects a year-over-year revenue decline of 1.4% at the midpoint, with an organic constant currency basis decline of about 2.0%, excluding the impact from exiting Russia. The company also adjusted its GAAP and non-GAAP income from operations and expects a GAAP effective tax rate of 20% and a non-GAAP rate of 24%. GAAP diluted EPS is expected to be $7.34-$7.64, with non-GAAP diluted EPS at $10.00-$10.30.

May 09, 2024 | 10:14 am
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EPAM Systems has lowered its FY24 revenue and EPS forecasts due to weaker than expected client demand, indicating a potential short-term negative impact on its stock price.
The revision in EPAM's financial forecasts, especially the reduction in revenue and EPS expectations, typically signals to investors concerns about the company's growth prospects and operational efficiency. This news is likely to negatively influence investor sentiment and could lead to a decrease in stock price in the short term, as the market adjusts to the new projections.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100