What happened
Shares of EPAM Systems (EPAM 2.04%), a leading provider of digital platform engineering and software development services, rocketed 82.9% in 2019, according to data from S&P Global Market Intelligence. That performance made it one of the year's better-performing large-cap tech stocks. For context, the S&P 500 index delivered a total return of about 31.5% in 2019.
In 2020, EPAM stock raced out of the gate: It's up 5.2% through Jan. 9, compared with the S&P 500's 1.4% rise.
Image source: Getty Images.
So what
We can attribute EPAM Systems' strong 2019 stock rise to its robust financial performance.
In the company's most recently reported quarter, EPAM's revenue jumped 26% year over year to $588.1 million. Under generally accepted accounting principles (GAAP), earnings per share (EPS) inched up 1% to $1.16, and adjusted EPS rose 19% to $1.39. That result comfortably beat Wall Street's $1.33 consensus estimate.
"Our clients are continually being challenged to deliver dynamic, human-centered experiences and platforms quickly and at scale," CEO Arkadiy Dobkin said in the earnings release. "Our third quarter results demonstrate the continued demand for our services as we help our clients become adaptive enterprises to better address these market challenges."
Now what
Investors should be getting material news next month. While EPAM hasn't yet scheduled a date for the release of its fourth-quarter and full-year 2019 results, they should come out in mid-February.
In light of the company's strong third-quarter results, management raised its 2019 adjusted EPS outlook. It also reiterated its full-year revenue and GAAP EPS guidance as follows:
|
Metric |
2019 Guidance |
Projected Change |
|---|---|---|
|
Revenue | Number not specified | At least 23% |
|
GAAP EPS |
$4.43 | At least 5% |
|
Adjusted EPS |
$5.35 (Previously was $5.25) | At least 22% |
Data source: EPAM Systems.
