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EPAM Systems (EPAM) to Report Q4 Earnings: What's in Store?
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EPAM Systems, Inc. (EPAM - Free Report) is slated to release fourth-quarter 2020 results on Feb 18.
Management expects revenues between $695 million and $705 million in the fourth quarter, suggesting year-over-year growth of 10.6% at the midpoint of the range. The Zacks Consensus Estimate for the top line is currently pegged at $702.22 million, indicating 10.97% year-on-year growth.
Management expects non-GAAP earnings between $1.63 and $1.73 per share. Notably, the consensus mark for earnings is pegged at $1.70 per share, indicating 12.58% year-over-year growth.
Let’s see how things have shaped up prior to this announcement.
EPAM’s fourth-quarter performance is likely to have benefited from strong demand for its services, driven by accelerated digital modernization across major industries in response to changes in the economic environment.
Moreover, despite increasing hiring (expectedly more than 2000 new hires) to meet the rising demand for its business, EPAM is likely to have incurred lower-than-usual SG&A expenses, which is expected to boost its profitability in the quarter to be reported. Management expects non-GAAP income from operations in the range of 17.5-18.5% for the fourth quarter.
Furthermore, foreign exchange fluctuations are likely to have had a negligible negative impact on revenue growth, per management’s expectations.
However, the wind-down of a large European financial services client is expected to have negatively impacted the Financial Services growth rate in the fourth quarter.
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 of 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 releases:
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently.
Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +0.36% and currently, a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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EPAM Systems (EPAM) to Report Q4 Earnings: What's in Store?
EPAM Systems, Inc. (EPAM - Free Report) is slated to release fourth-quarter 2020 results on Feb 18.
Management expects revenues between $695 million and $705 million in the fourth quarter, suggesting year-over-year growth of 10.6% at the midpoint of the range. The Zacks Consensus Estimate for the top line is currently pegged at $702.22 million, indicating 10.97% year-on-year growth.
Management expects non-GAAP earnings between $1.63 and $1.73 per share. Notably, the consensus mark for earnings is pegged at $1.70 per share, indicating 12.58% year-over-year growth.
Let’s see how things have shaped up prior to this announcement.
EPAM Systems, Inc. Price and EPS Surprise
EPAM Systems, Inc. price-eps-surprise | EPAM Systems, Inc. Quote
Factors to Consider
EPAM’s fourth-quarter performance is likely to have benefited from strong demand for its services, driven by accelerated digital modernization across major industries in response to changes in the economic environment.
Moreover, despite increasing hiring (expectedly more than 2000 new hires) to meet the rising demand for its business, EPAM is likely to have incurred lower-than-usual SG&A expenses, which is expected to boost its profitability in the quarter to be reported. Management expects non-GAAP income from operations in the range of 17.5-18.5% for the fourth quarter.
Furthermore, foreign exchange fluctuations are likely to have had a negligible negative impact on revenue growth, per management’s expectations.
However, the wind-down of a large European financial services client is expected to have negatively impacted the Financial Services growth rate in the fourth quarter.
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 of 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 releases:
Advance Auto Parts, Inc. (AAP - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently.
Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +0.36% and currently, a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>