Epam Systems narrows FY24 adjusted EPS view to $10.00-$10.30 from $10.00-$10.40

Consensus $4.81B. Sees FY24 revenue $4.58B-$4.68B, consensus $4.81B. The company said, “As the Company enters the second quarter, client demand is not improving to the degree originally expected. As a result, EPAM now expects the following for the full year: The Company expects revenues to now be in the range of $4.575 billion to $4.675 billion for the full year reflecting a year-over-year decline of 1.4% at the midpoint of the range. The Company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline approximately 2.0% at the midpoint of the range; For the full year, EPAM expects GAAP income from operations to now be in the range of 10.0% to 10.5% of revenues and non-GAAP income from operations to now be in the range of 15.0% to 15.5% of revenues; The Company expects its GAAP effective tax rate to now be approximately 20% and continues to expect its non-GAAP effective tax rate to be approximately 24%; and EPAM expects GAAP diluted EPS to now be in the range of $7.34 to $7.64 and narrows expected range for non-GAAP diluted EPS to $10.00 to $10.30. The Company now expects weighted average diluted shares outstanding for the year to be 58.7 million.”