What happened
Shares of EPAM Systems (EPAM 0.40%), a leading provider of digital platform engineering and software development services, soared 20.4% last month, according to data from S&P Global Market Intelligence. The stock is up 77.2% in 2019 through Dec. 3, making it one of the better performing large-cap tech stocks.
For context, the S&P 500 index returned 3.6% in November and has returned 25.7% so far this year.
Image source: Getty Images.
So what
We can attribute EPAM Systems stock's strong performance last month largely to the company's Nov. 7 release of third-quarter results that beat Wall Street's expectations, along with management's increasing its guidance for full-year adjusted earnings per share (EPS). Shares popped 6.7% following the release and continued to move upward throughout the month.
In Q3, EPAM's revenue jumped 26% year over year to $588.1 million. On a generally accepted accounting principles (GAAP) basis, EPS edged up 1% to $1.16, while adjusted EPS rose 19% to $1.39. That result beat the $1.33 analyst consensus estimate.
Now what
EPAM issued fourth-quarter guidance. It also raised its full-year adjusted EPS outlook and reiterated its full-year revenue and GAAP EPS guidance as follows:
|
Metric |
Q4 2019 Guidance |
Projected Year-Over-Year Change |
Full-Year 2019 Guidance |
Projected Year-Over-Year Change |
|---|---|---|---|---|
|
Revenue |
At least $616 million |
At least 22% |
Number not specified. | At least 23% |
|
GAAP EPS |
At least $1.19 |
At least 13% |
$4.43 |
At least 5% |
|
Adjusted EPS |
At least $1.43 |
At least 12% |
$5.35 (Previously was $5.25) |
At least 22% |
Data source: EPAM Systems.
