EVERTEC Inc (NYSE:EVTC), a leading transaction processor in Latin America and the Caribbean, closed its 2025 fiscal year by posting fourth-quarter results that surpassed Wall Street's expectations on both the top and bottom lines. The company's performance, driven by organic growth and strategic acquisitions, was met with a muted initial market reaction, as shares showed little movement in after-hours trading following the announcement.
Earnings Snapshot: Exceeding Expectations
The company's fourth-quarter report card showed strength where analysts were looking for it. Revenue growth was robust, and adjusted profitability came in ahead of consensus estimates.
- Revenue: Reported Q4 revenue reached $244.8 million, a 13.1% increase year-over-year. This figure exceeded the analyst consensus estimate of approximately $241.6 million.
- Earnings Per Share (Adjusted): The company reported adjusted earnings per share (EPS) of $0.93 for the quarter. This outpaced the average analyst estimate of $0.91 per share.
- Full-Year Performance: For the full year 2025, EVERTEC reported revenue of $931.8 million, a 10.2% increase, and adjusted EPS of $3.62, representing 10.4% growth.
Market Reaction and Forward Guidance
Despite the earnings beat, EVERTEC's stock price was largely unchanged in after-market trading. This neutral reaction may reflect a market that had already priced in strong performance or is weighing the company's forward-looking statements against a high bar.
A key point of focus for investors was the company's financial outlook for 2026. EVERTEC provided guidance that appears ambitious when stacked against current analyst projections.
- Revenue Outlook: The company forecasts 2026 revenue between $1.024 billion and $1.036 billion. The midpoint of this range ($1.03 billion) is approximately 5.5% higher than the current analyst consensus sales estimate of about $995.5 million for the year.
- EPS Outlook: Management expects 2026 adjusted EPS in the range of $3.84 to $3.96. The midpoint of this guidance ($3.90) is roughly 2.0% above the current analyst consensus EPS estimate of $3.82 for 2026.
The company's guidance, particularly on revenue, suggests confidence in continued growth from its core segments and recent acquisitions, potentially setting a higher benchmark for the coming year.
Press Release Highlights: Growth Drivers and Capital Return
Beyond the headline numbers, EVERTEC's earnings release highlighted several important operational and financial developments:
- Segmented Growth: Performance was broad-based. The Merchant Acquiring segment benefited from higher sales volume, while Payment Processing in Puerto Rico saw growth from ATH Movil transactions. The Latin America segment delivered strong results, fueled by organic growth and contributions from the recent Tecnobank acquisition.
- Profitability Metrics: Adjusted EBITDA for the quarter increased 11.5% to $98.8 million, though the margin saw a slight contraction to 40.3%, attributed in part to the growing contribution of the Latin America segment.
- Shareholder Returns: The company remains active in returning capital to shareholders. During 2025, EVERTEC repurchased 2.33 million shares for $69.3 million. Notably, the Board of Directors recently approved an increase to the share repurchase authorization, bringing the total available to $150 million through December 2027.
- Cost Management Headwinds: The press release noted pressures from higher depreciation and amortization related to recent acquisitions, increased personnel costs, and higher cloud expenses, which impacted GAAP net income for the quarter.
Conclusion
EVERTEC concluded a solid 2025 by delivering quarterly results that beat analyst forecasts, demonstrating the execution of its diversified, Latin America-focused business model. The market's flat reaction post-announceation indicates investors are likely looking ahead, evaluating whether the company can meet its own elevated revenue and earnings guidance for 2026. The expanded buyback program signals management's confidence in the company's financial health and commitment to shareholder value.
For a detailed look at EVERTEC's historical earnings, future estimates, and analyst ratings, visit the earnings and estimates page on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
