There's been a major selloff in EPAM Systems, Inc. (NYSE:EPAM) shares in the week since it released its yearly report, with the stock down 22% to US$209. Results were roughly in line with estimates, with revenues of US$4.7b and statutory earnings per share of US$7.84. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for EPAM Systems

After the latest results, the 19 analysts covering EPAM Systems are now predicting revenues of US$5.30b in 2025. If met, this would reflect a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 13% to US$6.95 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$5.23b and earnings per share (EPS) of US$8.69 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The consensus price target held steady at US$259, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on EPAM Systems, with the most bullish analyst valuing it at US$300 and the most bearish at US$200 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EPAM Systems' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of EPAM Systems'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.5% annually. So it's pretty clear that EPAM Systems is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$259, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for EPAM Systems going out to 2027, and you can see them free on our platform here.

We also provide an overview of the EPAM Systems Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.