Evertec (NYSE:EVTC) Releases Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Evertec beat quarterly expectations, reporting EPS of $1.07 versus the $0.98 consensus and revenue of $282.99 million versus $272.94 million expected.
• Despite the earnings and revenue beats, shares fell 4.5% on Tuesday to $31.23.
• The company declared a quarterly dividend of $0.05 per share, equivalent to $0.20 annually and a 0.6% yield.

Evertec (NYSE:EVTC - Get Free Report) posted its quarterly earnings data on Tuesday. The business services provider reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.09, FiscalAI reports. Evertec had a net margin of 9.80% and a return on equity of 32.07%. The firm had revenue of $282.99 million during the quarter, compared to analysts' expectations of $272.94 million.

Evertec Trading Down 4.5%

Shares of EVTC stock traded down $1.49 during trading hours on Tuesday, reaching $31.23. The company had a trading volume of 519,509 shares, compared to its average volume of 498,376. Evertec has a 1-year low of $21.81 and a 1-year high of $34.41. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.70 and a quick ratio of 1.70. The firm has a market cap of $1.87 billion, a price-to-earnings ratio of 20.28, a P/E/G ratio of 0.89 and a beta of 0.72. The company has a 50 day moving average of $29.64 and a 200 day moving average of $28.41.

Evertec Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Monday, November 9th will be paid a $0.05 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.6%. Evertec's dividend payout ratio is 12.99%.

Insiders Place Their Bets

In other Evertec news, EVP Paola Perez-Surillo sold 17,486 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $31.56, for a total value of $551,858.16. Following the transaction, the executive vice president owned 46,421 shares of the company's stock, valued at approximately $1,465,046.76. This represents a 27.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Aldo Polak sold 1,094 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $30.37, for a total value of $33,224.78. Following the transaction, the director owned 14,849 shares in the company, valued at approximately $450,964.13. This trade represents a 6.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 20,580 shares of company stock valued at $644,673. 1.13% of the stock is owned by insiders.

Wall Street Analyst Weigh In

EVTC has been the subject of several research reports. Wall Street Zen raised Evertec from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Weiss Ratings raised Evertec from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, October 21st. Finally, Morgan Stanley set a $34.00 price target on Evertec in a report on Thursday, August 6th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $35.00.

Evertec Company Profile

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.

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