Wall Street analysts forecast that Epam (EPAM) will report quarterly earnings of $2.27 per share in its upcoming release, pointing to a year-over-year decline of 7.7%. It is anticipated that revenues will amount to $1.28 billion, exhibiting an increase of 10.1% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 5.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
With that in mind, let's delve into the average projections of some Epam metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Revenues by Contract Type- Time-and-material' to come in at $1.08 billion. The estimate indicates a change of +10.3% from the prior-year quarter.
The consensus estimate for 'Revenues by Contract Type- Fixed-price' stands at $191.62 million. The estimate suggests a change of +8.7% year over year.
Analysts predict that the 'Revenues by Contract Type- Licensing and other revenues' will reach $10.48 million. The estimate indicates a year-over-year change of +37.6%.
View all Key Company Metrics for Epam here>>>
Over the past month, Epam shares have recorded returns of +10.9% versus the Zacks S&P 500 composite's +0.4% change. Based on its Zacks Rank #4 (Sell), EPAM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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EPAM Systems, Inc. (EPAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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