Evertec (NYSE:EVTC) Releases FY 2025 Earnings Guidance

Key Points

• Evertec has updated its FY 2025 earnings guidance, projecting earnings per share between $3.440 and $3.520, and revenue guidance of $901.0 million to $909.0 million, exceeding consensus estimates.
• Shares of Evertec have declined by 1.9%, trading at $32.79, as the company faces a competitive market with institutional investors owning 96.80% of its stock.
• Recently, Evertec declared a quarterly dividend of $0.05 per share, with a yield of 0.61%, indicating a stable return for shareholders amidst other financial updates.

Evertec (NYSE:EVTC - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 3.440-3.520 for the period, compared to the consensus EPS estimate of 3.418. The company issued revenue guidance of $901.0 million-$909.0 million, compared to the consensus revenue estimate of $894.3 million.

Evertec Stock Down 3.0%

Shares of NYSE:EVTC traded down $1.10 during mid-day trading on Friday, hitting $35.05. 273,864 shares of the company traded hands, compared to its average volume of 319,795. The stock has a market cap of $2.23 billion, a P/E ratio of 16.53, a P/E/G ratio of 1.81 and a beta of 0.98. The company has a current ratio of 1.99, a quick ratio of 1.99 and a debt-to-equity ratio of 1.69. Evertec has a 12-month low of $31.11 and a 12-month high of $38.56. The stock has a 50-day moving average price of $35.62 and a two-hundred day moving average price of $34.98.

Evertec (NYSE:EVTC - Get Free Report) last announced its earnings results on Wednesday, July 30th. The business services provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.03. The company had revenue of $229.61 million for the quarter, compared to analysts' expectations of $222.23 million. Evertec had a return on equity of 38.58% and a net margin of 15.56%. Evertec's quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.83 earnings per share. On average, equities research analysts forecast that Evertec will post 2.63 earnings per share for the current year.

Evertec Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Monday, August 4th will be given a $0.05 dividend. The ex-dividend date of this dividend is Monday, August 4th. This represents a $0.20 annualized dividend and a yield of 0.6%. Evertec's payout ratio is currently 10.05%.

Analyst Ratings Changes

Several research firms have weighed in on EVTC. Susquehanna set a $39.00 price objective on Evertec and gave the stock a "neutral" rating in a research report on Tuesday, May 20th. Raymond James Financial reissued an "outperform" rating and issued a $43.00 price objective (up previously from $42.00) on shares of Evertec in a research report on Thursday. Deutsche Bank Aktiengesellschaft began coverage on Evertec in a research report on Thursday, July 17th. They issued a "hold" rating and a $35.00 price objective on the stock. Morgan Stanley cut their price objective on Evertec from $35.00 to $34.00 and set an "equal weight" rating on the stock in a research report on Thursday. Finally, Keefe, Bruyette & Woods upped their price target on Evertec from $42.00 to $44.00 and gave the company an "outperform" rating in a research report on Thursday, May 8th. Three investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, Evertec has a consensus rating of "Moderate Buy" and an average target price of $39.00.

Insider Activity at Evertec

In related news, Director Ivan Pagan sold 6,852 shares of the business's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $36.65, for a total transaction of $251,125.80. Following the sale, the director directly owned 12,473 shares in the company, valued at approximately $457,135.45. The trade was a 35.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Miguel Vizcarrondo sold 40,000 shares of the business's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $36.44, for a total value of $1,457,600.00. Following the sale, the executive vice president owned 92,509 shares in the company, valued at approximately $3,371,027.96. The trade was a 30.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 75,634 shares of company stock worth $2,742,976 in the last 90 days. 0.63% of the stock is owned by company insiders.

Institutional Trading of Evertec

Several institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC purchased a new position in shares of Evertec during the 1st quarter valued at about $248,000. Royal Bank of Canada raised its holdings in shares of Evertec by 10.2% during the 1st quarter. Royal Bank of Canada now owns 37,786 shares of the business services provider's stock valued at $1,389,000 after buying an additional 3,495 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Evertec by 3.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,915 shares of the business services provider's stock valued at $1,394,000 after buying an additional 1,222 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Evertec by 1.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 86,721 shares of the business services provider's stock valued at $3,189,000 after buying an additional 846 shares in the last quarter. Finally, Jane Street Group LLC raised its holdings in shares of Evertec by 184.6% during the 1st quarter. Jane Street Group LLC now owns 133,714 shares of the business services provider's stock valued at $4,917,000 after buying an additional 86,733 shares in the last quarter. Hedge funds and other institutional investors own 96.80% of the company's stock.

Evertec Company Profile

EVERTEC, Inc engages in transaction processing business and financial technology in Latin America and the Caribbean. The company operates through four segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards.