We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Offing for EPAM Systems (EPAM) in Q1 Earnings?
Read MoreHide Full Article
EPAM Systems (EPAM - Free Report) is scheduled to report first-quarter 2023 results on May 5.
In the last reported quarter, the company delivered an earnings surprise of 9.3%. EPAM surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 26.4%.
For the first quarter, EPAM estimates reporting GAAP revenues between $1.20 billion and $1.21 billion, suggesting year-over-year growth of at least 3% at the midpoint. The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.21 billion.
EPAM projects non-GAAP earnings in the band of $2.30-$2.38 per share for the to-be-reported quarter. The consensus mark for earnings stands at $2.34 per share, indicating a decrease of 6% from the $2.49 reported in the year-ago period.
EPAM’s first-quarter performance is likely to have benefited from the strong demand for its services, driven by accelerated digital modernization across several industries in a continued response to economic changes post-COVID-19.
However, unfavorable currency exchange rates are likely to have hurt the top line in the first quarter. EPAM forecasts foreign currency translation to have a negative impact of 2% on total first-quarter revenues. Moreover, the acquisition of ENGINIETY is anticipated to have a negligible contribution to revenue growth in the first quarter.
Additionally, EPAM’s first-quarter performance is likely to have been impacted by the discontinuation of its business in Russia following the Kremlin forces’ invasion of Ukraine. The company had significant exposure in the region, with most of its delivery centers in Central and Eastern Europe (“CEE”), now diversified across other regions. EPAM forecast that the exit from the Russian market is likely to hurt first-quarter revenues by approximately 3%.
EPAM anticipates a contraction in the first-quarter non-GAAP operating margin on a year-over-year basis due to a negative impact of the resetting of social security caps and lower utilization. It projects the non-GAAP operating margin between 14% and 15%, which suggests a contraction of 110-210 basis points from the year-ago quarter’s 16.1%.
What Our Model Unveils
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. However, that’s not the case here.
EPAM currently carries a Zacks Rank of #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Cisco Systems (CSCO - Free Report) , Skyworks Solutions (SWKS - Free Report) and Garmin (GRMN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Cisco carries a Zacks Rank #2 and has an Earnings ESP of +1.59%. The company is slated to report third-quarter fiscal 2023 results on May 17. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSCO’s third-quarter earnings is pegged at 97 cents per share, indicating a year-over-year increase of 11.5%. The consensus mark for revenues stands at $14.39 billion, suggesting a year-over-year increase of 12.1%.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.45%. The company is scheduled to report second-quarter fiscal 2023 results on May 8. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.01 per share, implying a year-over-year decline of 23.6%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +0.80% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decrease 7.9% year over year to $1.08 billion.
Image: Bigstock
What's in the Offing for EPAM Systems (EPAM) in Q1 Earnings?
EPAM Systems (EPAM - Free Report) is scheduled to report first-quarter 2023 results on May 5.
In the last reported quarter, the company delivered an earnings surprise of 9.3%. EPAM surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 26.4%.
For the first quarter, EPAM estimates reporting GAAP revenues between $1.20 billion and $1.21 billion, suggesting year-over-year growth of at least 3% at the midpoint. The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.21 billion.
EPAM projects non-GAAP earnings in the band of $2.30-$2.38 per share for the to-be-reported quarter. The consensus mark for earnings stands at $2.34 per share, indicating a decrease of 6% from the $2.49 reported in the year-ago period.
EPAM Systems, Inc. Price and EPS Surprise
EPAM Systems, Inc. price-eps-surprise | EPAM Systems, Inc. Quote
Factors to Note Ahead of Q1 Earnings
EPAM’s first-quarter performance is likely to have benefited from the strong demand for its services, driven by accelerated digital modernization across several industries in a continued response to economic changes post-COVID-19.
However, unfavorable currency exchange rates are likely to have hurt the top line in the first quarter. EPAM forecasts foreign currency translation to have a negative impact of 2% on total first-quarter revenues. Moreover, the acquisition of ENGINIETY is anticipated to have a negligible contribution to revenue growth in the first quarter.
Additionally, EPAM’s first-quarter performance is likely to have been impacted by the discontinuation of its business in Russia following the Kremlin forces’ invasion of Ukraine. The company had significant exposure in the region, with most of its delivery centers in Central and Eastern Europe (“CEE”), now diversified across other regions. EPAM forecast that the exit from the Russian market is likely to hurt first-quarter revenues by approximately 3%.
EPAM anticipates a contraction in the first-quarter non-GAAP operating margin on a year-over-year basis due to a negative impact of the resetting of social security caps and lower utilization. It projects the non-GAAP operating margin between 14% and 15%, which suggests a contraction of 110-210 basis points from the year-ago quarter’s 16.1%.
What Our Model Unveils
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. However, that’s not the case here.
EPAM currently carries a Zacks Rank of #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Cisco Systems (CSCO - Free Report) , Skyworks Solutions (SWKS - Free Report) and Garmin (GRMN - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Cisco carries a Zacks Rank #2 and has an Earnings ESP of +1.59%. The company is slated to report third-quarter fiscal 2023 results on May 17. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSCO’s third-quarter earnings is pegged at 97 cents per share, indicating a year-over-year increase of 11.5%. The consensus mark for revenues stands at $14.39 billion, suggesting a year-over-year increase of 12.1%.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.45%. The company is scheduled to report second-quarter fiscal 2023 results on May 8. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.01 per share, implying a year-over-year decline of 23.6%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +0.80% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decrease 7.9% year over year to $1.08 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.