EPAM Systems’ EPAM fourth-quarter 2019 non-GAAP earnings per share improved 18.9% year over year to $1.51 and also beat the Zacks Consensus Estimate by 4.1%.Additionally, revenues in the reported quarter came in at $633 million, reflecting a year-over-year rise of 25.3%. The top line also surpassed the Zacks Consensus Estimate of $618 million. On a constant currency (cc) basis, revenues were up 24.8%.Increase in demand in the second half of the quarter coupled with stronger performance from a few of its acquired companies drove results. The company also incurred foreign exchange benefit of 0.5% due to the strengthening of Russian ruble.The company is benefiting from growth across all industry verticals and geographies. Digital transformation, focus on customer engagement and product development are key catalysts.Top-Line DetailsEPAM Systems’ largest vertical Financial Services exhibited 21.8% growth on a year-over-year basis. Travel & Consumer improved 15.9%.Software & Hi-Tech was up nearly 24.5%. Business Information & Media rose 38%.Life Science & Healthcare rose 20.3%. Exceptionally strong performance in the year-ago quarter resulted in tough year-over-year comparison.Emerging Verticals improved 36.3%, driven primarily by clients in energy and telecommunications sectors.Geographically, EPAM Systems generated 60.1% of total revenues from North America, up 20.2% year over year.Revenues from Europe, contributing 32.7% to total revenues, were up 31.4% (31.7% at cc).CIS or Commonwealth of Independent States, representing 4.9% of revenues, jumped 39.7% (27.7% at cc).APAC rose 5.4%, accounting for 2.3% of revenues.The company’s top 20 clients climbed 22.1% year over year in the quarter under review while the rest improved 27.7%.EPAM Systems, Inc. Price, Consensus and EPS Surprise EPAM Systems, Inc. price-consensus-eps-surprise-chart | EPAM Systems, Inc. QuoteMarginsEPAM Systems’ non-GAAP gross margin contracted 100 basis points (bps) to 36.7%.The company’s non-GAAP operating income improved 15.6% year over year to $107.6 million while operating margin contracted 140 bps to 17%.Balance Sheet and Cash FlowEPAM Systems exited the fourth quarter with cash and cash equivalents of $936.6 million, up from $853.2 million at the end of the third quarter.As of Dec 31, 2019, long-term debt was $25 million, flat sequentially.Cash generated from operating activities was $124.6 million in the quarter compared with $119 million reported in the previous quarter.Free cash flow came in at $77.6 million, compared with $91.8 million sequentially.2019 HighlightsEPAM generated total revenues of $2.29 billion in 2019, up 25.8% year over year.The company generated 22% of revenues from Financial Services, 19% revenues each from Travel and Consumer, and Software & Hi-Tech and 18% from Business Information & Media. Life Sciences & Healthcare and Emerging Verticals each contributed 10% to revenues.The company generated 61% of its revenues from North America, 33% from Europe, 4% from CIS and 2% from APAC.GuidanceFor 2020, EPAM Systems expects revenue growth to be at least 22% year over year. The company anticipates foreign currency fluctuations to have no impact on revenues. Inorganic contribution for the full year is expected to be around 1%.Non-GAAP operating margin is projected in the band of 16-17%. The company anticipates non-GAAP earnings to be $6.3.For the fourth quarter, the company forecasts revenues of minimum $642 million, up 23% (as reported and at cc) year over year.Non-GAAP earnings per share are expected to be at least at $1.36. Meanwhile non-GAAP operating margin is predicted between 15% and 16%.Zacks Rank and Other Stocks to ConsiderEPAM currently carries a Zacks Rank #2 (Buy).A few other top-ranked stocks in the broader technology sector are Cirrus Logic CRUS, SYNNEX SNX and Silicon Motion Technology Corporation SIMO, all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for Cirrus, SYNNEX and Silicon Motion is currently pegged at 15.3%, 10.37% and 7%, respectively.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SYNNEX Corporation (SNX): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report EPAM Systems, Inc. (EPAM): Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research