EPAM Systems Updates Full Year Guidance - Update

(RTTNews) - (Adds detailed Outlook for full year, Q3)

EPAM Systems, Inc. (EPAM) said, for the full year, it narrowed expected range for revenues to $4.590 billion to $4.625 billion, and updated expected GAAP EPS to now be in the range of $7.18 to $7.38 and non-GAAP EPS to now be in the range of $10.20 to $10.40. The company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 2.9% at the midpoint of the range. In May, the company projected revenues in the range of $4.575 billion to $4.675 billion, GAAP EPS in the range of $7.34 to $7.64 and non-GAAP EPS in a range of $10.00 to $10.30. The company said it is expecting no aggregate improvement in demand for the remainder of the year.

For the third quarter, EPAM expects GAAP EPS will be in the range of $1.75 to $1.83, and non-GAAP EPS will be in the range of $2.65 to $2.73. The company expects revenues will be in the range of $1.145 billion to $1.155 billion, reflecting a year-over-year decline of 0.2% at the midpoint of the range. The company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 1.4% at the midpoint of the range.

Q2 Results:

GAAP income from operations was $120.6 million, a decrease of 16.5%, compared to $144.3 million in the second quarter of 2023. Earnings per share on a GAAP basis was $1.70, a decrease of 16.3%. Non-GAAP EPS was $2.45, a decrease of 7.2%. Analysts on average had expected the company to earn $2.26 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenues decreased to $1.147 billion, a year-over-year decrease of 2.0%. On an organic constant currency basis excluding the impact of the exit from Russia, revenues were down 2.8% compared to the second quarter of 2023.

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