EPAM Systems Inc shares plunged 5.34% in pre-market trading on Thursday, despite the company reporting better-than-expected second-quarter earnings and revenue. The sharp decline was driven by a disappointing revenue outlook for the upcoming third quarter, which fell short of Wall Street consensus estimates.
For Q2, EPAM posted adjusted earnings of $3.38 per share, beating the analyst estimate of $3.14. Revenue rose 4.5% year-over-year to $1.415 billion, also exceeding the consensus of $1.407 billion. However, the company's guidance for Q3 revenue came in at a range of $1.41 billion to $1.425 billion, well below the IBES estimate of $1.445 billion. The midpoint of the Q3 adjusted EPS guidance of $3.38 to $3.46 was also slightly below the consensus of $3.44.
The weak revenue forecast overshadowed the strong Q2 performance and an upward revision to the full-year adjusted EPS outlook, which now stands at $13.08 to $13.24 versus the $13 estimate. The pre-market sell-off reflects investor concerns over near-term growth headwinds, despite the company's solid quarterly execution.