Epam (EPAM) Tops Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - Epam reported quarterly earnings of $2.45 per share, exceeding the Zacks Consensus Estimate of $2.26 per share, but down from $2.64 per share a year ago, representing an earnings surprise of 8.41% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - For the quarter ended June 2024, Epam posted revenues of $1.15 billion, surpassing the Zacks Consensus Estimate by 0.62%, although this is a decrease from year-ago revenues of $1.17 billion [2] Group 2: Stock Performance and Outlook - Epam shares have declined approximately 30% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The future performance of Epam's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $2.65 on revenues of $1.15 billion, and for the current fiscal year, it is $10.08 on revenues of $4.61 billion [7] Group 3: Industry Context - The Computers - IT Services industry, to which Epam belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Epam's stock performance [5]