EPAM Systems, Inc. (EPAM) plunged in the current market after announcing its withdrawal from the earlier announced guidelines for fiscal 2022. The stock values are at $24o.50, losing more than 37.06% compared to Friday’s closing price. EPAM closed at $382.12 at the end of the last trading session. The stock volume traded in the last trading session was around 729.89K shares. The current market cap of the company is around $13.62 billion.
EPAM’s New Statement
EPAM Systems announced in a press release that they are withdrawing their Q1 2022 expectations. The decision has been made due to the ongoing situation in Ukraine after the Russian Invasion. The uncertainty due to the geopolitical situation and its impact on the inflation and supply chain has made the company withdraw from its 2022 guidelines.
The rising tension between the two countries has caused the fear of supply chain disruption. Due to this, the company has decided to step back from its earlier announced guidelines. They will provide new guidelines when the situation settles between the two nations.
EPAM Previously announced Q1 and Fiscal 2022 guidelines
The Company estimates revenues of at least $5.150 billion in 2022, representing a 37% year-over-year increase, excluding a 1% adverse foreign currency translation effect. Constant currency revenue increase will be at least 38%. The company anticipates acquisitions to add 6% to sales. EPAM estimates GAAP diluted EPS of $10.43 to $10.76 and non-GAAP diluted EPS of $11.36 to $11.69 for the year 2022.
The Company estimates first-quarter 2022 revenues in the range of $1.170 billion to $1.180 billion, representing a year-over-year growth rate of roughly 50%. EPAM forecasts GAAP diluted EPS of $2.65 to $2.73 and non-GAAP diluted EPS of $2.58 to $2.66 for Q1 2022.
Conclusion
Previously, the company had targeted a significant number of 37% for 2022 in the financial abetment of fiscal 2021. However, seeing the current situation, the company has decided to hold on for the time being and revise its strategy when the situation cools down.
