EPAM Systems Inc (EPAM)

Epam Systems Inc (EPAM) stock declined by 26.99% after the software developer provided lower-than-expected sales and profit guidance for the current quarter and full year. Although first-quarter profits topped estimates, the company suggested its muted outlook reflected unanticipated market conditions and a tough demand environment.

• Financial Performance Overview: For the quarter ended March 2024, Epam reported revenue of $1.17 billion, down 3.8% over the same period last year. EPS came in at $3.06, compared to $2.47 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.16 billion, representing a surprise of +0.30%. The company delivered an EPS surprise of +31.90%, with the consensus EPS estimate being $2.32.
• Future Outlook: EPAM expects revenues of $1.135 billion-$1.145 billion, below the consensus of $1.18 billion, and an adjusted EPS of $2.21-$2.29 versus an estimated $2.44. The company lowered its FY24 revenue outlook to $4.575 billion-$4.675 billion (from $4.74 billion – $4.88 billion) vs. consensus of $4.81 billion. Also, the company revised the FY24 outlook for adjusted EPS to $10.00-$10.30 (from $10.00-$10.40 earlier) vs the $10.18 estimate.

EPAM's stock fell 21.72% after the company's surprise announcement of recalibrating expectations for the second quarter and this year compared to their previous guidance released on May 5 due to shrinking IT spending. Particularly, the expected revenues in the second quarter and the whole year are lowered by 2.5% and 4% respectively compared to the range given a month ago.

https://www.fool.com/investing/2023/06/05/why-epam-systems-plunged-today/