Caesars Entertainment misses Q2 earnings expectations, shares edge lower
In a year marked by significant volatility, EPAM Systems Inc. stock has reached a 52-week low, trading at $168.88. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, with a concerning year-to-date decline of 25.49%. The software engineering and IT consulting services provider has faced a challenging market environment, contributing to a notable 1-year change with a decrease of 38.49%. Despite the challenges, the company maintains strong fundamentals with a healthy current ratio of 2.96 and minimal debt levels. Investors are closely monitoring the company’s performance as it navigates through the headwinds affecting the tech sector, with hopes for a strategic pivot that could potentially rejuvenate its market position and investor sentiment. For deeper insights into EPAM’s financial health and growth potential, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
In other recent news, EPAM Systems reported fourth-quarter earnings that exceeded analyst expectations, with revenue reaching $1.25 billion, surpassing the consensus estimate of $1.21 billion. This represents a 7.9% year-over-year increase, driven by acquisitions and a return to organic growth. However, the company’s guidance for the first quarter of 2025 projects earnings per share (EPS) between $2.22 and $2.32, falling short of the $2.59 analyst estimate. Despite this, revenue guidance for the same period is expected to be between $1.275 billion and $1.29 billion, above the consensus of $1.267 billion.
Mizuho (NYSE:MFG) Securities recently adjusted its outlook on EPAM Systems, reducing the stock price target from $282.00 to $267.00 while maintaining an Outperform rating. This adjustment follows EPAM’s announcement of strong fourth-quarter results and its initial 2025 guidance, which indicates a return to annual organic growth. Similarly, Guggenheim cut its price target for EPAM from $290.00 to $285.00 but reaffirmed a Buy rating, noting the company’s positive organic revenue growth.
Both firms have revised their EPS estimates downward due to anticipated lower profitability, attributed to investments in emerging technologies like generative AI. Guggenheim highlights that these investments are strategic for future growth, despite their short-term impact on margins. Mizuho also acknowledges EPAM’s strategic relocations and acquisitions as positioning the company for accelerated growth in 2025.
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