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What's in the Cards for EPAM Systems (EPAM) in Q3 Earnings?
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EPAM Systems (EPAM - Free Report) is set to report third-quarter 2021 results on Nov 4.
EPAM projects third-quarter revenues between $957 million and $965 million (mid-point $961 million), suggesting year-over-year growth of 47% at the mid-point. The Zacks Consensus Estimate for the same is pegged at $966.3 million, suggesting growth of 48.2% from the year-ago reported figure.
Management projects non-GAAP earnings to be $2.15-$2.22 per share. The consensus mark for earnings is pegged at $2.22 per share, indicating an increase of 34.6% from $1.65 in the year-ago period.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8%.
Factors to Note
EPAM’s third-quarter performance is likely to have benefited from strong demand for its services, driven by accelerated digital modernization across several industries in response to economic changes post COVID-19.
The company expects its largest industry vertical, Business Information & Media, to bounce back on the travel and hospitality sector rebound, and recovery to pre-COVID levels. In the last reported quarter, this segment accounted for 17.9% of total revenues. It is expecting lower-than-average growth rate from the Life Sciences and Healthcare segment as some of its customer programs are likely to end in this quarter.
During the third quarter, EPAM expects a revenue contribution of 4.5% from acquisitions. Management anticipates non-GAAP income from operations to be 17-18%.
Foreign exchange fluctuations may have a negligible negative impact on revenue growth, according to management. Specifically, foreign exchange is likely to result in a loss of $1.5 million in the quarter to be reported.
Our proven model does not conclusively predict an earnings beat for EPAM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
EPAM currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which per our model have the right combination of elements to post an earnings beat in their upcoming release:
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What's in the Cards for EPAM Systems (EPAM) in Q3 Earnings?
EPAM Systems (EPAM - Free Report) is set to report third-quarter 2021 results on Nov 4.
EPAM projects third-quarter revenues between $957 million and $965 million (mid-point $961 million), suggesting year-over-year growth of 47% at the mid-point. The Zacks Consensus Estimate for the same is pegged at $966.3 million, suggesting growth of 48.2% from the year-ago reported figure.
Management projects non-GAAP earnings to be $2.15-$2.22 per share. The consensus mark for earnings is pegged at $2.22 per share, indicating an increase of 34.6% from $1.65 in the year-ago period.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8%.
Factors to Note
EPAM’s third-quarter performance is likely to have benefited from strong demand for its services, driven by accelerated digital modernization across several industries in response to economic changes post COVID-19.
The company expects its largest industry vertical, Business Information & Media, to bounce back on the travel and hospitality sector rebound, and recovery to pre-COVID levels. In the last reported quarter, this segment accounted for 17.9% of total revenues. It is expecting lower-than-average growth rate from the Life Sciences and Healthcare segment as some of its customer programs are likely to end in this quarter.
During the third quarter, EPAM expects a revenue contribution of 4.5% from acquisitions. Management anticipates non-GAAP income from operations to be 17-18%.
Foreign exchange fluctuations may have a negligible negative impact on revenue growth, according to management. Specifically, foreign exchange is likely to result in a loss of $1.5 million in the quarter to be reported.
EPAM Systems, Inc. Price and EPS Surprise
EPAM Systems, Inc. price-eps-surprise | EPAM Systems, Inc. Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for EPAM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
EPAM currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which per our model have the right combination of elements to post an earnings beat in their upcoming release:
HP (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +37.45% and a Zacks Rank #1 currently.
Uber Technologies (UBER - Free Report) has an Earnings ESP of +15.45% and a Zacks Rank #3 currently.