Why EPAM Stock Crashed in June
Shares of EPAM Systems (NYSE: EPAM) fell 12.4% in June, according to data from S&P Global Market Intelligence. The plunge flew in the face of a bullish trend for the stock market overall, as the S 500 index gained 6.5% over the same period. Chiefly, the software engineering specialist's investors were uncomfortable with the company's guidance update in the first week of last month.
EPAM's management issued a guidance update on June 5, lowering expectations across the board. Full-year revenue is now projected to shrink by roughly 2% year over year, replacing an original growth target of approximately 3%. Its adjusted operating margin was lowered by 50 basis points, lowering the midpoint of the full-year guidance range from 12.5% to 12%. Adjusted full-year earnings are now targeted at $10 per share, down from $10.70 per share.
The guidance ranges for the in-progress second quarter took even deeper cuts, except a stable forecast for operating margins.
Source Fool.com
Epam Systems Inc. Stock
Epam Systems Inc. is currently one of the favorites of our community with 20 Buy predictions and no Sell predictions.
With a target price of 165 € there is a hugely positive potential of 70.1% for Epam Systems Inc. compared to the current price of 97.0 €.
