Evertec Q3 revenue beats estimates on organic growth
Overview
Evertec Q3 revenue rises 8% to $228.6 mln, beating analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
Company completed acquisition of 75% of Tecnobank, expanding in Brazil
Outlook
Evertec raises 2025 revenue outlook to $921 mln-$927 mln, up from prior $6.6%-7.6% growth
Company expects 2025 adjusted EPS of $3.56-$3.62, up from prior 4.8%-7.0% growth
Evertec maintains 2025 capital expenditures forecast at $85 mln
Result Drivers
ORGANIC GROWTH - Revenue growth driven by organic expansion across all segments and acquisitions from late 2024
MERCHANT ACQUIRING - Higher sales volume and non-transactional revenues boosted merchant acquiring revenue, despite a slight decrease in spread
NET INCOME FACTORS - Net income increase driven by higher revenues, lower depreciation and amortization, lower interest expenses, and a gain on tax credits
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $228.60 mln | $224.70 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.92 | $0.89 (6 Analysts) |
Q3 Net Income | $32.90 mln | ||
Q3 Adjusted EBITDA | Slight Beat* | $92.60 mln | $92 mln (5 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Evertec Inc is $37.00, about 22.9% above its November 5 closing price of $28.53
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release:
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