EPAM Systems Expects Lower Q2 & FY Outlook Amid Slowing Demand & Uncertainty

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This is largely due to a slowdown in demand and the continued uncertainty surrounding the global economic environment. The company works with some of the world’s leading companies, providing custom software development, product design, and other IT services. The company has reported that the downward revision to their Q2 and FY outlook is due to a decrease in demand from customers, as well as increased uncertainty about the effects of economic conditions on their business.

Additionally, the company is expecting to make fewer investments in certain strategic initiatives, which could further impact financial results. Despite revising their outlook for Q2 and FY, EPAM ($NYSE:EPAM) Systems remain optimistic that its strategy will continue to position the company well in the coming quarters. The company is looking to capitalize on digital transformation trends and take advantage of opportunities created by the changing business landscape. As such, EPAM is confident that they will be able to move forward in their pursuit of long-term growth and success.

Stock Price

On Monday, EPAM SYSTEMS stock saw a steep decline of 21.7%, opening at $216.7 and closing at $203.2, compared to the prior closing price of $259.6. This dramatic fall in stock value was in response to the company’s expectation for lower Q2 and FY outlook due to slowing global demand and increased economic uncertainty. The company has also indicated that their industry and clients are facing significant headwinds due to the prevailing economic conditions. Additionally, with the presence of a looming recession, it is highly likely that the situation will continue to worsen in the near future, further impacting EPAM SYSTEMS’ financial performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Epam Systems. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Epam Systems. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Epam Systems. More…

Key Ratios Snapshot

Some of the financial key ratios for Epam Systems are shown below. More…

Analysis

At GoodWhale, we conducted an extensive analysis of EPAM SYSTEMS‘s wellbeing. Our analysis showed that EPAM SYSTEMS is strong in asset, growth, profitability, but weak in dividend according to Star Chart. In terms of cashflows and debt, EPAM SYSTEMS has a high health score of 10/10, meaning that it is well-equipped to sustain future operations in times of crisis. We classified EPAM SYSTEMS as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Investors looking for long-term investments in stable companies may find EPAM SYSTEMS attractive, as it is likely to maintain its high profitability over the long-term. More…

Peers

The company has over 25,000 employees and clients in over 90 countries. EPAM Systems Inc. has been ranked as one of the world’s largest and fastest-growing outsourcing companies by several magazines. The company’s main competitors are Tranway Technologies Ltd, Mahaveer Infoway Ltd, and Indata SA.

– Tranway Technologies Ltd ($BSE:542923)

Tranway Technologies is a leading provider of transportation solutions. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation. Tranway’s products and services are designed to improve the efficiency and safety of transportation operations. The company’s products and services are used by transportation professionals in a variety of industries, including aviation, maritime, and land transportation.

– Mahaveer Infoway Ltd ($BSE:539383)

Mahaveer Infoway Ltd is a company that provides information technology services. It has a market cap of 35.64M as of 2022 and a return on equity of 5.35%. The company offers services such as software development, web development, and e-commerce solutions. It also provides IT consulting and support services. The company has its headquarters in Bangalore, India.

Summary

On the same day, stock prices dropped, which signals further apprehension in the market about EPAM’s performance. Investors should be aware of these developments and factor them into their analysis when considering investing in EPAM. They should also be conscious of any potential future shifts in the market that could affect EPAM Systems’ performance.