Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. Valued at $12.61 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions. The software engineering and product development services provider is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 8.

Ahead of the event, analysts expect EPAM to report a profit of $1.72 per share on a diluted basis, down 22.2% from $2.21 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect EPAM to report EPS of $7.81, down 9.3% from $8.61 in fiscal 2023.

EPAM stock has underperformed the S&P 500’s ($SPX) 15.9% gains on a YTD basis, with shares down 29.3% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 15.8% gains over the same time frame.

On Jul. 16, EPAM shares rose more than 5% after investment banking and capital markets firm Jefferies upgraded the stock to Buy from Hold.

On May 9, EPAM closed down more than 26% after cutting its full-year adjusted EPS estimate. It now expects its adjusted EPS to be between $10 and $10.30, down from a previous estimate of between $10 and $10.40. The company reported its Q1 results on May 9, with its adjusted EPS coming in at $3.06, beating Wall Street expectations of $2.32. The company’s revenue of $1.17 billion topped Wall Street forecasts of $1.16 billion. 

For Q2, EPAM expects adjusted EPS to be between $2.21 and $2.29 and revenue between $1.14 billion and $1.15 billion. The company expects full-year revenue to be between $4.58 billion and $4.68 billion. 

Analysts’ consensus opinion on EPAM stock is bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, nine give a “Hold” rating, and one recommends a “Moderate Sell.” The average analyst price target for EPAM is $228.95, indicating a potential upside of 5.3% from the current levels. 

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