Overview

* Epam ( EPAM ) Q3 revenue grows 19.4% yr/yr, slightly beating analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

* Company announces new $1 bln share repurchase plan

Outlook

* EPAM ( EPAM ) raises full-year revenue guidance to $5.430 bln-$5.445 bln, reflecting 15.0% growth

* Company increases full-year GAAP EPS forecast to $6.75-$6.83

* EPAM ( EPAM ) expects Q4 revenue of $1.380 bln-$1.395 bln, 11.1% growth at midpoint

Result Drivers

* AI TRANSFORMATION - Revenue growth driven by engineering expertise and focus on AI transformation, per CEO Balazs Fejes

* SHARE REPURCHASE - Company repurchased $82.1 mln of stock in Q3 and announced new $1 bln repurchase plan

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $1.39 $1.38

Revenue Beat* bln bln (13

Analysts

)

Q3 Beat $3.08 $3.02

Adjusted (14

EPS Analysts

)

Q3 EPS $1.91

Q3 Slight $222.80 $220.60

Adjusted Beat* mln mln (12

Income Analysts

from )

Operatio

ns

Q3 $144.90

Income mln

from

Operatio

ns

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Epam Systems Inc ( EPAM ) is $210.00, about 23.4% above its November 5 closing price of $160.91

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)