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EPAM Systems (EPAM) to Post Q3 Earnings: What's in Store?
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EPAM Systems (EPAM - Free Report) is slated to release third-quarter 2019 results on Nov 7.
For the third quarter, the company expects revenues at minimum $579 million. The Zacks Consensus Estimate is currently pegged at $579.9 million, indicating 23.9% growth from the year-ago reported figure.
Non-GAAP earnings per share are anticipated at $1.32. The consensus mark for earnings of $1.34 suggests 14.53% rise from the year-ago reported quarter.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.76%.
In second-quarter 2019, non-GAAP earnings per share rose 26.7% year over year to $1.28 and also beat the Zacks Consensus Estimate of $1.23.
Additionally, revenues in the reported quarter came in at $551.6 million, marking a year-over-year rise of 23.8% and also topping the Zacks Consensus Estimate of $549 million. On constant currency (cc) basis, revenues were up 25.1%.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
EPAM System’s third-quarter results are likely to have been driven by broad-based demand for its digital solutions. Notably, the company is witnessing growth across all industry verticals and geographies. Digital transformation along with focus on customer engagement and product development is likely to have been a key catalyst.
Normalized growth in financial services in the second quarter, after witnessing a weak first quarter, makes us optimistic. Growing demand for asset management and payment processing offerings is expected to have been a tailwind. Albeit insurance is a small segment generating modest revenues, it is increasingly benefiting the company.
Furthermore, rising demand for consulting services in the healthcare vertical is a positive.
However, slowdown within certain consumer clients in Europe and North America might have persisted as a key challenge to the travel & consumer segment.
Additionally, adverse foreign currency fluctuations and macroeconomic perils are likely to have posed a key threat to the stock.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for EPAM Systems this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 Systems’ Zacks Rank #2 and an Earnings ESP of 0.00% make surprise prediction difficult.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Eyenovia, Inc. (EYEN - Free Report) has an Earnings ESP of +10.51% and a Zacks Rank of 2.
iHeartMedia, Inc. (IHRT - Free Report) has an Earnings ESP of +3.17% and is Zacks #2 Ranked.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
EPAM Systems (EPAM) to Post Q3 Earnings: What's in Store?
EPAM Systems (EPAM - Free Report) is slated to release third-quarter 2019 results on Nov 7.
For the third quarter, the company expects revenues at minimum $579 million. The Zacks Consensus Estimate is currently pegged at $579.9 million, indicating 23.9% growth from the year-ago reported figure.
Non-GAAP earnings per share are anticipated at $1.32. The consensus mark for earnings of $1.34 suggests 14.53% rise from the year-ago reported quarter.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.76%.
In second-quarter 2019, non-GAAP earnings per share rose 26.7% year over year to $1.28 and also beat the Zacks Consensus Estimate of $1.23.
Additionally, revenues in the reported quarter came in at $551.6 million, marking a year-over-year rise of 23.8% and also topping the Zacks Consensus Estimate of $549 million. On constant currency (cc) basis, revenues were up 25.1%.
EPAM Systems, Inc. Price and EPS Surprise
EPAM Systems, Inc. price-eps-surprise | EPAM Systems, Inc. Quote
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
EPAM System’s third-quarter results are likely to have been driven by broad-based demand for its digital solutions. Notably, the company is witnessing growth across all industry verticals and geographies. Digital transformation along with focus on customer engagement and product development is likely to have been a key catalyst.
Normalized growth in financial services in the second quarter, after witnessing a weak first quarter, makes us optimistic. Growing demand for asset management and payment processing offerings is expected to have been a tailwind. Albeit insurance is a small segment generating modest revenues, it is increasingly benefiting the company.
Furthermore, rising demand for consulting services in the healthcare vertical is a positive.
However, slowdown within certain consumer clients in Europe and North America might have persisted as a key challenge to the travel & consumer segment.
Additionally, adverse foreign currency fluctuations and macroeconomic perils are likely to have posed a key threat to the stock.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for EPAM Systems this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 Systems’ Zacks Rank #2 and an Earnings ESP of 0.00% make surprise prediction difficult.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Activision Blizzard, Inc has an Earnings ESP of +24.30% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eyenovia, Inc. (EYEN - Free Report) has an Earnings ESP of +10.51% and a Zacks Rank of 2.
iHeartMedia, Inc. (IHRT - Free Report) has an Earnings ESP of +3.17% and is Zacks #2 Ranked.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>