EPAM forecasts Q3 revenue below estimates as tough economy weighs
Aug 3 (Reuters) - EPAM Systems on Thursday forecast third-quarter revenue below Wall Street estimates, as customers reduced spending and demand in the global IT services market remains uncertain.
Enterprise budgets have been tight due to murky economic outlook, affecting digitization efforts and cloud adoption that saw a boom during the pandemic.
"While the demand environment remains uneven, due in part to a slowdown in near-term decision making, EPAM continues to position for the eventual return of growth as customers gain confidence in their optimization initiatives," said EPAM CEO Arkadiy Dobkin.
The company forecast 2023 revenue between $4.65 billion and $4.70 billion, below analysts' estimates of $4.7 billion according to Refinitiv.
The software engineering and product development service provider faced a negative impact on its revenue in its year-ago quarter by its decision to exit Russia and discontinue services to customers in that country.
EPAM posted revenue of $1.17 billion for the second quarter ended June 30, ahead of analysts' estimates of $1.16 billion.
On an adjusted basis, it posted a profit of $2.64 per share, beating estimates of $2.38 per share in the year-ago period.
EPAM forecast adjusted earnings per share for the full-year between $9.90 and $10.10. Analysts were expecting $9.92 per share. (Reporting by Tanya Jain in Bengaluru; Editing by Shailesh Kuber)
