NEWTOWN, Pa. - EPAM Systems, Inc. (NYSE:EPAM) reported second quarter earnings and revenue that topped analyst estimates, while narrowing its full-year guidance. EPAM shares were trading flat in Thursday's premarket session following the announcement.
The digital transformation services provider posted adjusted earnings per share of $2.45, exceeding the consensus forecast of $2.26. Revenue came in at $1.15 billion, slightly above expectations of $1.14 billion but down 2% year-over-year.
"With ongoing exposure to a challenging macro-demand environment, EPAM's solid performance highlights the Company's ability to adapt and optimize operations, while continuing to strengthen its offerings and client value propositions," said CEO Arkadiy Dobkin.
For the third quarter, EPAM projects revenue between $1.15-$1.16 billion and adjusted EPS of $2.65-$2.73. The company narrowed its full-year 2024 revenue outlook to $4.59-$4.63 billion, compared to its previous forecast of $4.65-$4.80 billion. Full-year adjusted EPS guidance was updated to $10.20-$10.40.
EPAM also announced a new $500 million share repurchase program authorized by its Board of Directors.
The company's operating margin contracted to 10.5% in Q2 from 12.3% a year ago, reflecting ongoing macro headwinds. However, EPAM maintained its focus on operational efficiency and strategic capabilities like GenAI to position itself for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.