What's Going On With EPAM Systems Stock Friday?
Portfolio Pulse from Nabaparna Bhattacharya
EPAM Systems, Inc. (NYSE:EPAM) shares are trading higher in the premarket session on Friday, following a 27% slump after reporting Q1 FY24 results. The company's sales declined 3.8% year over year to $1.165 billion, slightly beating analyst estimates. EPAM cited uneven demand for its services and increased compensation costs as reasons for the decline. The company also completed two acquisitions, expanded its geographical reach, and repurchased shares under its share repurchase program. However, it lowered its FY24 revenue and adjusted EPS outlook, indicating operational challenges and market concerns.
May 10, 2024 | 12:35 pm
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NEUTRAL IMPACT
EPAM Systems reported a 3.8% decline in Q1 FY24 sales year over year, slightly beating estimates. The company faced operational challenges, leading to a lowered FY24 revenue and adjusted EPS outlook. Despite these challenges, shares are trading higher in the premarket session.
The slight premarket recovery of EPAM's stock despite the reported decline in sales and lowered outlook suggests a mixed short-term impact. The positive reaction could be due to the company's strategic acquisitions and share repurchase program, which may offset concerns about its operational challenges and revised forecasts. However, the lowered revenue and EPS outlook for FY24 could limit the upside potential in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100