Evertec (NYSE:EVTC) Issues Earnings Results

Evertec (NYSE:EVTC) posted its earnings results on Tuesday. The business services provider reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.09, FiscalAI reports. Evertec had a return on equity of 32.07% and a net margin of 9.80%. The company had revenue of $282.99 million for the quarter, compared to analysts’ expectations of $272.94 million.

Here are the key takeaways from Evertec’s conference call:

• Third-quarter results were strong: revenue rose 24% to $283 million, adjusted EBITDA increased 19% to $110 million, and adjusted EPS grew 15% to $1.07, driven by acquisitions, organic growth and favorable foreign exchange.
• EVERTEC raised its 2026 reported revenue outlook to $1.088 billion–$1.096 billion and expects adjusted EPS growth of 10.5%–12.7%; the company cited solid operating momentum, share repurchases and a higher-than-expected R&D tax credit.
• Latin America remains the primary growth engine. Latin America Payments and Solutions revenue increased 59% reported, or 52% in constant currency, with broad-based organic growth, contributions from Dimensa and Tecnobank, and market-share gains in Brazil, Chile and other markets.
• Management highlighted significant long-term opportunities from digital payment adoption, financial-services modernization, AI productivity initiatives and the Transbank contract, whose contribution is expected to begin late in the second half of 2027 and ramp more meaningfully in 2028.
• Profitability and near-term comparisons face pressure from higher interest expense, depreciation and amortization, non-controlling interest and an increasingly Latin America-heavy mix; Puerto Rico’s vehicle-fine amnesty benefit will not recur, and the expected lower pricing on a renewed EBT relationship will temper 2027 growth.

Evertec Stock Performance

EVTC stock traded down $1.49 during trading on Tuesday, reaching $31.23. 519,512 shares of the company’s stock were exchanged, compared to its average volume of 498,376. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.89. Evertec has a 1-year low of $21.81 and a 1-year high of $34.41. The company’s fifty day moving average price is $29.64 and its 200-day moving average price is $28.41. The firm has a market cap of $1.87 billion, a PE ratio of 20.28, a P/E/G ratio of 0.89 and a beta of 0.72.

Evertec Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Monday, November 9th will be paid a dividend of $0.05 per share. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.20 annualized dividend and a yield of 0.6%. Evertec’s payout ratio is presently 12.99%.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Wall Street Zen raised shares of Evertec from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Weiss Ratings upgraded shares of Evertec from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, October 21st. Finally, Morgan Stanley set a $34.00 target price on shares of Evertec in a research note on Thursday, August 6th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $35.00.

Insiders Place Their Bets

In other news, Director Aldo Polak sold 1,094 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $30.37, for a total transaction of $33,224.78. Following the transaction, the director directly owned 14,849 shares of the company’s stock, valued at approximately $450,964.13. This trade represents a 6.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paola Perez-Surillo sold 17,486 shares of Evertec stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $31.56, for a total transaction of $551,858.16. Following the sale, the executive vice president owned 46,421 shares in the company, valued at approximately $1,465,046.76. This represents a 27.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 20,580 shares of company stock worth $644,673 over the last three months. Corporate insiders own 1.13% of the company’s stock.

About Evertec

Evertec, Inc is a payment processing and financial technology company that provides transaction-processing services and business technology solutions to financial institutions, merchants, government agencies and other organizations. The company operates through businesses that support electronic payments, merchant acquiring, payment networks and related financial services.

Its products and services include debit and credit card processing, point-of-sale and e-commerce payment acceptance, automated teller machine processing, prepaid services, electronic bill payment and money transfer solutions.