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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, EPAM Systems' 24 analysts are now forecasting revenues of US$5.14b in 2025. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.8% to US$8.50. 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 10% 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. Currently, the most bullish analyst values EPAM Systems at US$300 per share, while the most bearish prices it at US$195. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. Factoring in the forecast slowdown in growth, it looks like EPAM Systems is forecast to grow at about the same rate as the wider 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on EPAM Systems. Long-term earnings power is much more important than next year's profits. We have forecasts for EPAM Systems going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.