2024-01-30 15:54:17 ET
Summary
- EPAM Systems, Inc. is experiencing declining revenue and decreased earnings due to reduced client demand and lower employee utilization.
- The company's revenue from the Software & Hi-Tech and Business Information & Media segments has seen the largest drop.
- Despite positive performance during the pandemic, the stock appears fully valued and faces challenges in revenue growth and employee utilization.
- I'm therefore Neutral [Hold] on EPAM Systems in the near term.
Investment Outlook
EPAM Systems, Inc. ( EPAM ) is producing declining revenue on reduced client demand for discretionary projects and decreased earnings from lowered efficiencies from employee utilization.
While management seeks to maintain its most productive employee base as it hopes for revenue stabilization, until EPAM Systems, Inc. returns to top line revenue growth, stabilized earnings and improved employee utilization, I’m doubtful for a materially positive stock catalyst....
Read the full article on Seeking Alpha
For further details see:
EPAM Systems Faces Declining Revenue And Reduced Employee Utilization