EPAM Systems Stock Up As Q2 Beats Street, Sees Q3 Earnings Above Market, Lifts FY25 Outlook - Update

(RTTNews) - Digital engineering company EPAM Systems, Inc. (EPAM), while reporting second-quarter results above market estimates, on Thursday issued third-quarter earnings outlook above the Street. The company also raised fiscal 2025 adjusted earnings view above the market.

In the pre-market activity, EPAM shares were gaining around 7.6 percent to trade at $162.94.

For the third quarter, EPAM expects earnings per share in the range of $1.89 to $1.97, and adjusted earnings per share in the range of $2.98 to $3.06.

Revenues for the quarter are projected to be in the range of $1.365 billion to $1.380 billion, reflecting year-over-year growth of 17.6 percent at the midpoint of the range. Revenue growth rate on an organic constant currency basis is expected to be 6.2 percent at the midpoint of the range.

The Wall Street analysts on average expected the company to report earnings of $2.89 per share on revenues of $1.36 billion. Analysts' estimates typically exclude special items.

For fiscal 2025, EPAM now expects earnings per share in the range of $6.48 to $6.64 and adjusted earnings per share in the range of $10.96 to $11.12. The company previously expected earnings per share in the range of $6.78 to $7.03 and adjusted earnings per share in the range of $10.70 to $10.95.

The Street is looking for earnings of $10.85 per share for the year.

Further, the company raised its expected year-over-year revenue growth rate to now be in the range of 13.0 percent to 15.0 percent for 2025, and organic constant currency basis to be in the range of 3.0 percent to 5.0 percent.

The company raised its expected year-over-year revenue growth rate to now be in the range of 11.5 percent to 14.5 percent for 2025 and organic constant currency basis to be in the range of 2.0 percent to 5.0 percent.

The company previously expected revenue growth rate to be in the range of 11.5 percent to 14.5 percent on a reported basis, and 2.0 percent to 5.0 percent on an organic constant currency basis.

In the second quarter, the company's earnings came in at $88.03 million or $1.56 per share, compared with $98.65 million or $1.70 per share last year.

Adjusted earnings were $156.79 million or $2.77 per share for the period, compared to $2.45 in the second quarter of 2024.

Analysts had expected the company to earn $2.61 per share.

The company's revenue for the period rose 18.1 percent to $1.353 billion from $1.146 billion last year, while the Street expected $1.33 billion. On an organic constant currency basis, revenues were up 5.3 percent.

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