Shares of EPAM Systems (NYSE: EPAM) fell 12.4% in June, according to data from S&P Global Market Intelligence. The plunge flew in the face of a bullish trend for the stock market overall, as the S 500 index gained 6.5% over the same period. Chiefly, the software engineering specialist's investors were uncomfortable with the company's guidance update in the first week of last month.
EPAM's management issued a guidance update on June 5, lowering expectations across the board. Full-year revenue is now projected to shrink by roughly 2% year over year, replacing an original growth target of approximately 3%. Its adjusted operating margin was lowered by 50 basis points, lowering the midpoint of the full-year guidance range from 12.5% to 12%. Adjusted full-year earnings are now targeted at $10 per share, down from $10.70 per share.
The guidance ranges for the in-progress second quarter took even deeper cuts, except a stable forecast for operating margins.
Source Fool.com