EPAM Systems Stock Plunges After Weak Guidance Overshadows Earnings Beat, Denting Retail Optimism

EPAM Systems Inc. (EPAM) shares tumbled by more than 13% in afternoon trade on Thursday after the IT services provider reported fourth-quarter results above market estimates but issued an earnings outlook below the Street’s expectations.

According to Koyfin, the company reported earnings of $2.84 per share for the quarter, beating analysts’ estimates of $2.75. 

Revenue rose 7.9% year-over-year to $1.25 billion, slightly above Wall Street’s projection of $1.21 billion.

However, the company forecasts first-quarter (Q1) earnings per share to be between $2.22 and $2.32, falling short of analysts' expectations of $2.59. 

Revenue is projected to be between $1.28 billion and $1.29 billion, marking a 10% year-over-year increase at the midpoint, roughly in line with estimates.

For fiscal 2025, EPAM anticipates earnings per share in the range of $10.45 to $10.75, below analysts’ consensus of $11.32. 

The weaker outlook raised concerns about the company's growth trajectory, particularly as macroeconomic uncertainty weighed on the IT services sector.

On Stocktwits, retail sentiment around the shares sipped into the ‘neutral’ (53/100) territory from ‘bullish’ a day ago, as chatter increased to ‘high’ levels. 

Some users remained cautiously optimistic, arguing that EPAM’s guidance was conservative given its expanding contract base.

Others were more skeptical.

EPAM shares have fallen 27% over the past year, with losses totaling 5% year-to-date.

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