EPAM Systems raises annual profit forecast on strong IT service demand
Figurines with computers and smartphones are seen in front of EPAM logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration
May 7 : EPAM Systems on Thursday raised its annual profit forecast, after beating quarterly profit estimates, on strong demand for its software services amid sustained spending by companies on artificial intelligence technology enhancement.
• The IT consultancy firm expects full-year adjusted profit to be in the range of $12.98 to $13.28 per share, compared with the prior view of $12.60 to $12.90.
• It forecast second-quarter profit in the range of $3.10 to $3.18 per share on an adjusted basis, the mid-point of which is above the estimates of $3.10.
• "We are on a multi-year transformation journey, continuing to position ourselves to fully benefit and capitalize on AI growth opportunities as well as accelerate our own AI client zero transformation," CEO and President Balazs Fejes said.
• However, EPAM expects second-quarter revenue of $1.40 billion to $1.42 billion, slightly below estimates of $1.43 billion.
• The company provides a wide range of IT services including consulting, cloud and AI transformation and software engineering.
• Its first-quarter revenue of $1.40 billion was in line with analysts' estimates.
• Its adjusted EPS came in at $2.86 per share for the quarter ended March 31, topping analysts' average estimate of $2.75, according to data compiled by LSEG.
• The spending on software development and AI-driven transformation projects by companies has sustained despite broader economic uncertainty.
• EPAM also sees year-over-year revenue growth rate between 4 per cent and 6.5 per cent for 2026.
