Latest news with #EPAM
Yahoo
a day ago
- Business
- Yahoo
EPAM Q1 Earnings Call: Leadership Transition and AI Demand Shape Outlook
Digital engineering services company EPAM Systems (NYSE:EPAM) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 11.7% year on year to $1.3 billion. Its non-GAAP EPS of $2.41 per share was 6.1% above analysts' consensus estimates. Is now the time to buy EPAM? Find out in our full research report (it's free). Revenue: $1.3 billion (11.7% year-on-year growth) Adjusted EPS: $2.41 vs analyst estimates of $2.27 (6.1% beat) Adjusted Operating Income: $175.8 million vs analyst estimates of $167.3 million (13.5% margin, 5.1% beat) Revenue Guidance for Q2 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.3 billion Management raised its full-year Adjusted EPS guidance to $10.83 at the midpoint, a 2.1% increase Operating Margin: 7.6%, down from 9.5% in the same quarter last year Constant Currency Revenue rose 12.6% year on year (-4.3% in the same quarter last year) Market Capitalization: $9.95 billion EPAM's first quarter results were shaped by a blend of organic growth and strategic acquisitions, with CEO Arkadiy Dobkin highlighting progress in AI-related offerings and the return of some clients previously lost to competitors. Dobkin explained, 'Our performance this quarter was driven by meaningful progress and strengthening client engagement, enhancing cross-selling efforts, and continuing to deliver advanced complex solutions.' Management also pointed to supplier consolidation trends and increased demand for quality-driven execution as factors supporting sequential momentum. The company saw double-digit year-over-year revenue growth, with contributions from both core business and recent acquisitions, despite ongoing margin pressures from compensation increases and lower profitability in acquired units. Looking ahead, EPAM's updated guidance reflects management's expectation of continued demand for its AI and digital transformation services, alongside a carefully managed leadership transition. Dobkin stated, 'We are encouraged by the incremental demand we continue to see for our AI capabilities, as focus on productivity and efficiency gains turns into more comprehensive AI native transformation programs.' Management cautioned, however, that macroeconomic uncertainty remains, particularly in the second half of the year, and that visibility into client spending is still limited. CFO Jason Peterson added that while client budgets appear intact, 'all indications are that [current trends] would carry through into Q3,' with the company monitoring for any changes. The company raised its full-year adjusted EPS outlook and expects sequential growth into the next quarter, though it remains mindful of potential headwinds. Management attributed quarterly results to increased AI-related demand, successful client re-engagement, and contributions from recent acquisitions, while also noting ongoing macroeconomic challenges and margin pressures. Leadership transition announced: Founder Arkadiy Dobkin will move to Executive Chairman in September, with Balazs Fejes (President of Global Business and Chief Revenue Officer) set to become CEO, ensuring continuity as the company enters a new phase focused on AI-driven transformation. AI-driven client demand: Management reported double-digit growth in AI-related revenues and highlighted that the majority of top clients are expanding their use of EPAM's AI consulting and engineering services. Early-stage AI projects are maturing into larger, production-scale engagements, particularly in industries such as oil and gas and manufacturing. Supplier consolidation benefits: EPAM is seeing business return from clients who previously left for lower-cost competitors. Dobkin noted that 'clients who had prioritized cost above all else in selecting partners are now returning to EPAM,' citing the importance of proven delivery quality and expertise. Acquisition impact and diversification: Recent acquisitions, including NEORIS and FD, contributed materially to financial services and emerging verticals, though management acknowledged that these additions lowered overall margins due to integration costs and profitability differences. Geographic and talent footprint expansion: EPAM continued to grow its delivery hubs in India, Central and Eastern Europe, and Latin America. The company highlighted net headcount growth in these regions and the importance of balancing junior and senior talent to support evolving client needs. Management expects future performance to be driven by sustained AI-related demand, operational efficiency, and the ability to adapt to evolving client priorities amid ongoing macroeconomic uncertainty. AI and digital transformation momentum: EPAM anticipates that growing client interest in AI native transformation programs will remain a primary driver of revenue, with many projects expanding in scale and complexity. Management emphasized partnerships with cloud and platform providers to enhance its AI value proposition. Operational focus and margin improvement: The company plans to improve gross margins by increasing utilization and driving productivity, while managing compensation and integration costs from acquisitions. CFO Jason Peterson highlighted a renewed focus on utilization and noted that seasonal factors should benefit margins in the second half of the year. Cautious outlook amid uncertainty: Despite strong first-half momentum, management acknowledged that macroeconomic risks and potential demand softening in the fourth quarter could temper growth. The company remains vigilant in monitoring client spending and is prepared to adjust hiring and investment levels as needed. In the coming quarters, the StockStory team will monitor (1) the pace and size of AI-related project expansion and how quickly early-stage engagements mature, (2) the progression of the CEO transition and any strategic shifts under incoming leadership, and (3) improvements in margin from operational actions and acquisition integration. Additional attention will be paid to client spending patterns and the impact of macroeconomic factors on demand. EPAM currently trades at a forward P/E ratio of 16.2×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Irish Times
3 days ago
- Business
- Irish Times
FD Technologies revenue rises amid strategy shift
FD Technologies said revenue rose in the year to the end of February as the company saw significant strategic progress. The company said revenue for the year was £80.7 million (€95.6 million), a 2 per cent rise year on year. However, the company reported an operating loss of £23.4 million, widening from £15.6 million a year earlier, with an adjusted Earnings before interest, tax, depreciation and amortisation of £6.5 million. In October last year, the company agreed to sell its First Derivatives division to US software company EPAM for £230 million and divesting MRP, leaving leave FD Technologies to focus on KX, another arm of the group, as its sole continuing operation. READ MORE During the second half of the financial year, KX continued to perform well, delivering bookings growth for the fiscal year at the top end of it guidance range with £18 million annual contract value. That was a 33 per cent rise on the same period last year, when the figure was £13.5 million. Annual recurring revenue rose 13 per cent to £81.8 million during the year, a strategic milestone 'As these results demonstrate, momentum is accelerating in KX bookings and ARR growth, and the business is on course to deliver sustainable operating leverage over the long term, with cash EBITDA reaching breakeven in FY27,' chief executive Seamus Keating said. 'Following the completion of the disposal of First Derivative for an enterprise value of £230 million in December 2024, we returned £120 million to shareholders via a tender offer in January 2025, reflecting our commitment to maintaining an efficient balance sheet and maximising shareholder value.' The company has also agreed a takeover deal that will see US private equity fund TA pay £24.50 a share for FD Technologies, valuing the company at £570 million. 'TA has significant experience supporting in high-growth global software businesses, and we believe it is a suitable and appropriate partner for our employees, customers, and other stakeholders,' Mr Keating said. The company has a 'robust pipeline' for the coming financial year, and plans to invest in expanding its customer reach in core sectors, including the financial services sector, boosting innovation, and exploring new markets. 'With accelerating ARR growth and better-than-expected operating leverage, KX delivered a strong performance based on good ongoing execution,' Mr Keating said. 'Our focus for FY26 is to deliver efficient growth and demonstrate progress in delivering the significant operating leverage that is a feature of our business over the long term. We will prioritise our investments to accelerate deployment, time to value and ease of use, further simplifying our product model and enhancing sales productivity.' The company said it expects ARR growth of at least 20 per cent in the coming financial year.
Yahoo
21-05-2025
- Business
- Yahoo
3 Services Stocks Walking a Fine Line
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 6.3%. This drawdown was discouraging since the S&P 500 held steady. A cautious approach is imperative when dabbling in these companies as many are also sensitive to the ebbs and flows of the broader economy. With that said, here are three services stocks we're steering clear of. Market Cap: $2.33 billion With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Sell WLY? Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle Earnings per share were flat over the last two years and fell short of the peer group average 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $43.20 per share, Wiley trades at 17.9x forward EV-to-EBITDA. To fully understand why you should be careful with WLY, check out our full research report (it's free). Market Cap: $10.53 billion Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE:EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products. Why Does EPAM Worry Us? Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.3 percentage points Eroding returns on capital suggest its historical profit centers are aging EPAM's stock price of $185.89 implies a valuation ratio of 17.1x forward P/E. Read our free research report to see why you should think twice about including EPAM in your portfolio, it's free. Market Cap: $23.28 billion Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE:HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments. Why Does HPE Give Us Pause? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.8% over the last five years was below our standards for the business services sector Revenue growth over the past two years was nullified by the company's new share issuances as its earnings per share fell by 3.1% annually ROIC of 2.9% reflects management's challenges in identifying attractive investment opportunities Hewlett Packard Enterprise is trading at $17.65 per share, or 8.2x forward P/E. If you're considering HPE for your portfolio, see our FREE research report to learn more. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
White Hat (an EPAM company) Wins Global Recognition as Outstanding Cybersecurity Consultant
Named winner of the 2025 Cyber OSPAs in London LONDON, May 19, 2025 /PRNewswire/ -- White Hat (an EPAM company), a premier cybersecurity company acquired in 2021 by the US digital transformation leader EPAM (NYSE: EPAM), won the 2025 Outstanding Security Performance Award (OSPA) in the category of Outstanding Cybersecurity Consultant. The recognition was announced during the official Cyber OSPAs Award Ceremony in London. White Hat CTO Idan Keren received the award on behalf of the company. White Hat was shortlisted in March as one of six global finalists for the award, which celebrates excellence in cybersecurity consulting. The award recognizes individuals, teams, or companies who demonstrate outstanding performance and impact across any area of cybersecurity consulting. The judges recognized White Hat for leading in innovation, with AI-driven security, an attacker-focused approach, and a proprietary solutions delivering demonstrable client impact. Offensive-Led, Proactive CybersecurityFounded in 2013, White Hat delivers cybersecurity services through the lens of the adversary, allowing organizations to proactively identify weaknesses before they can be exploited. The company's client base spans global enterprises, financial institutions, government agencies, and critical infrastructure operators in Israel and around the world. Since being acquired by EPAM Systems (NYSE: EPAM) in 2021, White Hat has more than doubled its revenue, driven by both domestic growth and international expansion. White Hat's success stems from a unique combination of deep offensive expertise, attacker-centric research, and a team of military-grade ethical hackers. The company's proprietary 'Eye of the Enemy' platform provides continuous threat exposure management, while its 360° Incident Response suite supports clients throughout the full incident lifecycle. These are supported by a wide range of services including strategic consulting, threat hunting, APT simulations, and advanced offense-led penetration testing. Nir Tenzer, CEO of White Hat, commented: "We're honored to receive the OSPA for Outstanding Cybersecurity Consultant. This recognition is a meaningful milestone for our team, whose work often happens behind the scenes but has real impact on the resilience of the world's most critical systems. It's a moment to pause, appreciate how far we've come, and recommit to what matters — helping our clients stay ahead in an increasingly complex threat landscape, supporting our partners and growing our expertise." Recognition and GrowthWhite Hat's industry recognition highlights its leadership and commitment to excellence. White Hat's comprehensive cybersecurity services, led by ethical hackers and elite cyber analysts, protect organizations across sectors including government, banking, insurance, and high-tech. The Cyber OSPAs recognize outstanding performance in the security sector. For more information about the awards and this year's winners, visit: | For further inquiries:whitehat@ View original content: SOURCE White Hat Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
EPAM, CDW, Cognex, DXC, and NetApp Shares Skyrocket, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains. However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels. Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: IT Services & Consulting company EPAM (NYSE:EPAM) jumped 5.7%. Is now the time to buy EPAM? Access our full analysis report here, it's free. IT Distribution & Solutions company CDW (NASDAQ:CDW) jumped 6%. Is now the time to buy CDW? Access our full analysis report here, it's free. Specialized Technology company Cognex (NASDAQ:CGNX) jumped 7.4%. Is now the time to buy Cognex? Access our full analysis report here, it's free. IT Services & Consulting company DXC (NYSE:DXC) jumped 5.2%. Is now the time to buy DXC? Access our full analysis report here, it's free. Hardware & Infrastructure company NetApp (NASDAQ:NTAP) jumped 5.2%. Is now the time to buy NetApp? Access our full analysis report here, it's free. Cognex's shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Cognex is down 11.4% since the beginning of the year, and at $31.62 per share, it is trading 40.2% below its 52-week high of $52.91 from July 2024. Investors who bought $1,000 worth of Cognex's shares 5 years ago would now be looking at an investment worth $566.13. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
