Shareholders will be ecstatic, with their stake up 23% over the past week following EPAM Systems, Inc.'s (NYSE:EPAM) latest quarterly results. It looks like a credible result overall - although revenues of US$1.2b were what the analysts expected, EPAM Systems surprised by delivering a (statutory) profit of US$2.37 per share, an impressive 32% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for EPAM Systems

Taking into account the latest results, the consensus forecast from EPAM Systems' 24 analysts is for revenues of US$5.14b in 2025. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.9% to US$8.54. In the lead-up to this report, the analysts had been modelling revenues of US$4.91b and earnings per share (EPS) of US$8.31 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to US$246per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EPAM Systems, with the most bullish analyst valuing it at US$300 and the most bearish at US$195 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that EPAM Systems' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.6% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this to the 106 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.2% per year. So it's pretty clear that, while EPAM Systems' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around EPAM Systems' earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple EPAM Systems analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of EPAM Systems' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.