(WS News) – EPAM Systems lifted its annual revenue and profit forecasts on Thursday, betting on strong demand for its IT services towards the end of the year as enterprise spending picks up, sending shares of the software provider 11% higher before the bell.
More companies are spending on digital transformation and cloud modernization to save costs and improve efficiency.
Last month, EPAM acquired the consulting business of Northern Ireland-based FD Technologies for $300.9 million to deepen its expertise in financial services and enhance its artificial intelligence-related capabilities.
The company now expects its full-year revenue to be between $4.69 billion and $4.70 billion, compared with its previous projection of $4.59 billion to $4.63 billion.
It sees adjusted profit between $10.73 and $10.81 per share, above its earlier estimate of $10.20 to $10.40.
Peer Cognizant Technology Solutions also raised its annual revenue forecast, and beat third-quarter profit estimates on gradual recovery in the business environment.
For the third quarter ended Sept. 30, EPAM posted adjusted profit of $3.12 per share, above analysts’ estimates of $2.70, according to data compiled by LSEG.
Its quarterly revenue of $1.17 billion also beat Street estimates of $1.15 billion.
