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Evertec Inc

EVERTEC, Inc. provides transaction processing and financial technology services in Latin America, Puerto Rico, and the Caribbean. It operates through four segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. The company offers 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. It also provides payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers. In addition, the company offers business process management solutions comprising core bank processing, network hosting, managed services and managed security services, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Further, it owns and operates the ATH network, a personal identification number debit network. The company processes approximately ten billion transactions annually through a system of electronic payment networks. It sells and distributes its services primarily through direct sales force. The company serves financial institutions, merchants, corporations, and government agencies. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.

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EVTC

Payment Processing Stocks Mixed in Q2 Earnings

Payment processing stocks reported mixed second-quarter results, with the four companies tracked by the article collectively beating revenue consensus estimates by 2% but seeing their share prices fall an average of 3.1% since reporting. Jack Henry posted revenue of $633.1 million, up 6.6% year over year and 1.3% above expectations, with full-year EPS guidance slightly topping estimates, and its stock rose 8.6% to $166.32. EVERTEC delivered the biggest analyst estimate beat and highest full-year guidance raise of the group, with revenue of $274.8 million, up 19.7% year over year and 4.4% above consensus, yet its stock fell 8.2% to $29.89. Fiserv was the weakest performer, with revenue of $4.96 billion, down 4.5% year over year and 1.7% below expectations, missing EPS estimates and full-year guidance, and its stock declined 2.8% to $52.57. Shift4 reported revenue of $1.30 billion, up 34% year over year and 4% above consensus, but its full-year revenue and EPS guidance significantly missed expectations, and its stock dropped 9.9% to $48.10.
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EVERTEC Q2 Revenue Beats Estimates, Raises Full-Year Guidance

EVERTEC reported second-quarter revenue of $274.8 million, beating analyst estimates of $263.2 million and growing 19.7% year over year. Adjusted EPS came in at $1.05 versus estimates of $0.95, and adjusted EBITDA was $109.3 million against estimates of $103.6 million. The company raised its full-year revenue guidance to $1.09 billion at the midpoint from $1.08 billion, and its full-year adjusted EPS guidance of $3.99 at the midpoint beat analyst estimates by 1.8%. CEO Morgan Schuessler highlighted new partnerships with Transbank in Chile and Clip in Mexico as key milestones, with the Transbank deal expected to ramp fully in 2028. Operating margin declined to 19.4% from 24.4% a year earlier, and the company's market capitalization stands at $1.77 billion.
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EVERTEC Faces 25% Fair Value Gap Despite Earnings Beat and Raised Guidance

EVERTEC reported second quarter 2026 results that exceeded market expectations and raised its full year guidance, yet the most followed narrative pegs fair value at $25, which sits below the last close at $31.31 and frames the recent rally as stretched. The narrative fair value of $25 paints EVERTEC as 25.2% overvalued, driven by revenue growth assumptions, margin pressure, and a lower future earnings multiple. This comes after a 34.03% 90-day share price return, though the one-year total shareholder return declined 10.02%. On a simple price-to-earnings basis, EVERTEC trades at 19.2 times earnings, below a 27.5 times peer average and only slightly above an 18 times fair ratio, pointing to a more balanced risk reward picture.
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EVERTEC Raises Full-Year Guidance and Expands Buyback Despite Sharp Profit Drop

EVERTEC reported second-quarter revenue of US$274.82 million while net income fell sharply to US$5.41 million, and the company raised its full-year revenue and GAAP EPS guidance alongside expanding its share repurchase authorization to US$150 million. The company highlighted stronger Latin American payments growth, new multiyear agreements in Chile and Mexico, and recent Brazilian technology acquisitions as key drivers of its evolving business mix. Despite the profit decline, management signaled confidence through the larger buyback and a steady dividend, even as the shares recorded a 1.85% seven-day decline. The upgraded full-year outlook shapes EVERTEC's investment narrative, though integration costs, interest expense, and mix shifts continue to pressure GAAP earnings.
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StockStory Highlights Piper Sandler and EVERTEC as Top Financials Picks, Questions T. Rowe Price

StockStory identified Piper Sandler and EVERTEC as two financials stocks with promising prospects while questioning T. Rowe Price. Piper Sandler posted 19.6% annual revenue growth over the last two years and 34.8% annual earnings per share growth, with a 15.3% return on equity. EVERTEC achieved 13.3% annual revenue growth and 13% annual earnings per share growth over the same period, also demonstrating a stellar return on equity. In contrast, T. Rowe Price saw only 2.6% annual revenue growth over five years and a 1.4% annual decline in earnings per share, leading StockStory to flag it as a stock to avoid. The broader financials sector gained just 1.4% over the past six months, trailing the S&P 500's 6.2% rise.
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