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Why EPAM Systems Stock Jumped 20.4% in November

By Beth McKenna – Dec 4, 2019 at 7:50AM

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Shares of the global software engineering and IT consulting provider have gained more than 77% in 2019.

What happened

Shares of EPAM Systems (EPAM -2.09%), 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.  

Binary digits (0s and 1s) flying above and along a highway leading into a city -- concept for digital transformation.

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:


Q4 2019 Guidance

Projected Year-Over-Year Change

Full-Year 2019 Guidance

Projected Year-Over-Year Change


At least $616 million

At least 22%

Number not specified. At least 23%


At least $1.19

At least 13%


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.  

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends EPAM Systems. The Motley Fool has a disclosure policy.

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