EPAM Systems Inc shares sank 17% to $214.86 in early Monday trading after the digital transformation services and product engineering company announced that it is reducing its second quarter and full year 2023 profit and revenue outlook, citing “further deterioration” in near-term demand.
For its second quarter, EPAM said it now expects adjusted earnings per share (EPS), which excludes nonrecurring items, of $2.33 to $2.40 and revenue of $1.16 billion to $1.17 billion, falling short of the FactSet consensus for EPS of $2.43 on $1.21 billion in revenue.
For the full year, the company reduced its guidance ranges for adjusted EPS to $9.80 to $10.20 from $10.60 to $10.80 and for revenue to $4.65 billion to $4.80 billion from $4.95 billion to $5.00 billion.
“In the weeks since our Q1 earnings call, we have seen our clients become even more cautious with spending specifically in the ‘build’ segment of the global IT services market,” EPAM Systems CEO Arkadiy Dobkin said in a statement.
Shares of EPAM Systems have fallen about 35% year to date.
Contact Sean at sean@proactiveinvestors.com