Why EPAM Systems Inc Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EPAM Systems Inc (NYSE: EPAM  ) rose more than 10% early Thursday, then settled to close up around 5% after the IT services specialist turned in solid first-quarter results and announced an acquisition.

So what: Quarterly revenue rose 29.1% year over year to $160.4 million, which translated to 34.3% growth in adjusted earnings per share to $0.47. Analysts, on average, were looking for earnings of just $0.41 per share on sales of $153 million.

Separately, EPAM Systems announced the acquisition of Jointech, a provider of strategic technology services to global investment banks. Specific financial terms for the deal weren't disclosed.

Now what: This in mind, including the impact of both its Jointech purchase and its March acquisition of health care tech consulting firm Netsoft, EPAM sees full-year 2014 revenue growth of 25% to 27%, and adjusted net income growth of 23% to 25%.

Meanwhile, EPAM expects current quarter revenue between $168 million and $170 million -- or growth of 26% to 27% from the same year-ago period -- and adjusted earnings per diluted share in the range of $0.47 to $0.48. Analysts were modeling second-quarter earnings of $0.47 per share on sales of $164 million.

Assuming EPAM didn't pay a horrendous premium for its latest acquisition, these were solid results by any measure. With shares currently trading at a reasonable 14.4 times next year's estimated earnings, I think EPAM still has plenty of room to reward long-term shareholders from here.

Six more stock picks poised for incredible growth
If EPAM doesn't quite do it for you, don't worry; there are plenty of fast-growing stocks out there. Lucky for you, we know the secret to finding the best ones. Meet Motley Fool co-founder David Gardner, who has proved skeptics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his six carefully chosen picks for ultimate growth instantly, because he's making this premium report free for you today. Seriously, it's free! So click here now for access.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 02, 2014, at 4:25 PM, jeffsfortune wrote:

    The street will notice this Gem soon enough. Firing on all cylinders with a great and proven CEO leading the charge.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2940332, ~/Articles/ArticleHandler.aspx, 9/3/2015 5:10:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 7 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:04 PM
EPAM $69.44 Up +0.35 +0.51%
EPAM Systems CAPS Rating: ****