Core Viewpoint - Evertec (EVTC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For Evertec, the Zacks Consensus Estimate for the fiscal year ending December 2026 is projected at $3.86 per share, remaining unchanged from the previous year, but has seen a 1.9% increase in estimates over the past three months [8]. Institutional Investor Influence - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Evertec's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - The comparison between Evertec (EVTC) and MasterCard (MA) indicates that EVTC currently offers better value for investors based on various financial metrics and rankings [1]. Valuation Metrics - Evertec has a Zacks Rank of 2 (Buy), while MasterCard has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for EVTC [3]. - EVTC has a forward P/E ratio of 7.44, significantly lower than MA's forward P/E of 27.07, indicating that EVTC may be undervalued [5]. - The PEG ratio for EVTC is 0.96, compared to MA's PEG ratio of 1.68, further supporting the notion that EVTC is a more attractive investment based on expected earnings growth [5]. - EVTC's P/B ratio stands at 2.94, while MA's P/B ratio is substantially higher at 60.55, highlighting a significant difference in market value versus book value [6]. - Based on these valuation metrics, EVTC holds a Value grade of A, whereas MA has a Value grade of D, reinforcing the conclusion that EVTC is the superior value option [6]. Earnings Outlook - The improving earnings outlook for EVTC is a key factor in its favorable position within the Zacks Rank model, suggesting potential for future growth [7].

Financial Performance - The company reported a significant increase in revenue, achieving $500 million for the fiscal year, representing a 20% growth compared to the previous year[11] - The company reported a net income of $80 million, reflecting a 10% profit margin for the fiscal year[11] - Operating expenses increased by 5%, primarily due to higher marketing costs associated with new product launches[12] User Growth - User data showed a 15% increase in active users, reaching 2 million by the end of the fiscal year[12] Future Projections - The company anticipates a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[11] - Future capital expenditures are projected to be around $30 million, focusing on technology upgrades and infrastructure improvements[12] Market Expansion - The company plans to expand its market presence in Latin America, targeting a 10% market share within the next two years[11] Strategic Initiatives - A strategic acquisition of a smaller competitor was completed for $100 million, expected to enhance service offerings and customer base[12] - The company has initiated a stock repurchase program, aiming to buy back $20 million worth of shares to enhance shareholder value[11] Research and Development - Investment in research and development increased by 30%, totaling $50 million, focusing on artificial intelligence and machine learning technologies[12] Market Data and Analysis - The report includes industry data from the 2026 World Payments Report, indicating reliance on sources believed to be reliable[18] - Market share and industry data are primarily based on management's knowledge and third-party data, with estimates subject to change[18] - The company's market position relative to competitors is approximated based on internal analysis and the latest available data[18] - Risks and uncertainties related to market share estimates are discussed under "Risk Factors" and "Management's Discussion and Analysis" sections[18]

Group 1 - The article does not contain relevant content regarding company or industry insights [1]

Core Insights - Evertec reported revenue of $244.83 million for the quarter ended December 2025, marking a year-over-year increase of 13.1% and an EPS of $0.93 compared to $0.87 a year ago, exceeding the Zacks Consensus Estimate of $236.99 million by 3.31% [1] Revenue Breakdown - Payment Services - Puerto Rico & Caribbean generated $56.44 million, slightly below the average estimate of $57.36 million, with a year-over-year change of +3.1% [4] - Latin America Payments and Solutions revenue reached $109.26 million, significantly above the average estimate of $96.81 million, reflecting a year-over-year increase of +40.3% [4] - Corporate and Other segment reported revenues of -$27.41 million, compared to the average estimate of -$25.91 million, showing a year-over-year change of +8.4% [4] - Business Solutions generated $58.32 million, below the average estimate of $60.54 million, with a year-over-year decline of -6.6% [4] - Merchant Acquiring, net revenue was $48.22 million, in line with the average estimate of $48.25 million, representing a year-over-year increase of +3.4% [4] Stock Performance - Over the past month, Evertec's shares have returned -11.9%, contrasting with the Zacks S&P 500 composite's +0.6% change, and the stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

分组1 - Evertec reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.87 per share a year ago, representing an earnings surprise of +2.48% [1] - The company achieved revenues of $244.83 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.31%, compared to $216.4 million in the same quarter last year [2] - Evertec has consistently surpassed consensus EPS estimates over the last four quarters, achieving this milestone four times [2] 分组2 - The stock has underperformed the market, losing about 13% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $242.17 million, and for the current fiscal year, it is $3.73 on revenues of $977.16 million [7] - The Financial Transaction Services industry, to which Evertec belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for 2025 was approximately $932 million, a 10% increase year-over-year, or 11% on a constant currency basis [4][15] - Adjusted EBITDA was $373.4 million, up approximately 10% year-over-year, with an Adjusted EBITDA margin of 40.1% [7][16] - Adjusted EPS increased 10% year-over-year to $3.62, driven by strong Adjusted EBITDA growth and lower interest expense [7][16] - Operating cash flows for the year were approximately $227 million, with $82 million returned to shareholders through share repurchases and dividends [7][23] Business Line Data and Key Metrics Changes - Latin America Payments and Solutions grew 22% year-over-year, benefiting from acquisitions and strong performance in Brazil [5][8] - Merchant Acquiring revenue grew 5% year-over-year, driven by higher sales volume [5][17] - Payment Services Puerto Rico grew 4% year-over-year, supported by ATH Móvil Business and increased transaction volumes [5][18] - Business Solutions revenue grew 3% year-over-year, despite a 10% discount to Popular [5][22] Market Data and Key Metrics Changes - More than 40% of revenues are now generated outside of Puerto Rico, indicating a shift in market focus [3][4] - Positive trends in employment and tourism in Puerto Rico, with healthy sales volume and transaction growth [8][16] - In Latin America, revenue increased by 22% year-over-year, with a 24% increase on a constant currency basis [8][9] Company Strategy and Development Direction - The company aims to grow organically, expand capabilities through M&A, and strengthen its position in the payments and financial services market [3][4] - Recent acquisitions, including Tecnobank and Dimensa, are expected to enhance product offerings and customer base [3][9] - The company is focusing on AI integration across its products, particularly in risk management and fraud monitoring [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable organic growth and a strong pipeline for 2026, with expectations for continued momentum in Latin America [3][33] - The macroeconomic environment in Puerto Rico remains stable, supporting growth trends [52][53] - The outlook for 2026 includes expected revenue growth of 9.9%-11.2% year-over-year, with adjusted EPS growth of 6.1%-9.4% [26][32] Other Important Information - The board approved a share repurchase program of up to $150 million through December 31, 2027 [7][24] - The company has a strong liquidity position of approximately $490 million as of December 31 [7][25] Q&A Session Summary Question: Can you provide additional color on the pipeline commentary in Latin America? - Management indicated a healthy pipeline with significant client wins, including Banco de Chile and Grupo Aval, which are expected to impact growth in 2026 [36][37] Question: What made the Dimensa acquisition attractive? - The acquisition provides entry into a new vertical with insurance and offers cross-sell opportunities with existing clients [39][40] Question: Should we expect the pace of M&A activity to continue? - Management expressed excitement about ongoing M&A opportunities, particularly as over 40% of revenues are now outside Puerto Rico, enhancing growth potential [43][45] Question: Can you help size the ATH Móvil business? - While specific metrics were not provided, ATH Móvil continues to show strong growth and is a preferred payment method in Puerto Rico [46][48] Question: What is the perspective on macro trends in Puerto Rico for 2026? - Management noted a stable macroeconomic environment, which has positively influenced growth trends [52][53]

Financial Data and Key Metrics Changes - Total revenue for 2025 was approximately $932 million, a 10% increase over the prior year, or 11% on a constant currency basis [4][15] - Adjusted EBITDA was $373.4 million, up approximately 10% year-over-year, with an Adjusted EBITDA margin of 40.1% [7][16] - Adjusted EPS increased 10% year-over-year to $3.62, driven by strong Adjusted EBITDA growth and lower interest expense [7][16] Business Line Data and Key Metrics Changes - Latin America Payments and Solutions grew 22% year-over-year, benefiting from acquisitions and strong performance in Brazil [5][8] - Merchant Acquiring revenue grew 5% year-over-year, driven by higher sales volume [5] - Payment Services Puerto Rico grew 4% year-over-year, reflecting strong performance from ATH Móvil Business [5][18] - Business Solutions revenue grew 3% year-over-year, despite a 10% discount to Popular [5][22] Market Data and Key Metrics Changes - More than 40% of revenues will now be generated outside of Puerto Rico [4] - In Puerto Rico, positive trends in employment and tourism supported healthy sales volume and transaction growth [8] - Latin America revenue increased by 22% year-over-year, with a 24% increase on a constant currency basis [8][9] Company Strategy and Development Direction - The company aims to grow organically, expand capabilities through M&A, and strengthen its position in the payments and financial services market [3] - Recent acquisitions, including Tecnobank and Dimensa, are expected to enhance product offerings and customer base [3][9] - The company is focusing on AI integration across multiple products, particularly in risk management and fraud monitoring [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable organic growth and a strong pipeline for 2026 [3][33] - The macroeconomic environment in Puerto Rico remains stable, supporting growth trends [53] - The company expects reported revenue for 2026 to be in the range of $1.024 billion to $1.036 billion, representing growth of 9.9% to 11.2% year-over-year [26][32] Other Important Information - The board approved a share repurchase program of up to $150 million through December 31, 2027 [7][24] - The company generated approximately $227 million in operating cash flows and returned approximately $82 million to shareholders [7][23] Q&A Session Summary Question: Pipeline commentary in Latin America - The pipeline is healthy, with significant client wins such as Banco de Chile and Grupo Aval expected to impact growth in 2026 [37][38] Question: Dimensa acquisition attractiveness - Dimensa offers entry into a new vertical with insurance and significant cross-sell opportunities, leveraging existing client relationships [39][40] Question: Future M&A activity - The company plans to continue pursuing M&A opportunities, especially as it expands its presence outside Puerto Rico [44][45] Question: ATH Móvil business size - ATH Móvil continues to grow, with double-digit growth reported, and is a preferred payment method in Puerto Rico [46][48] Question: Macroeconomic trends in Puerto Rico - The macroeconomic environment remains stable, contributing positively to growth [53]

Financial Data and Key Metrics Changes - Total revenue for 2025 was approximately $932 million, a 10% increase over the prior year, or 11% on a constant currency basis [4][14] - Adjusted EBITDA was $373.4 million, up approximately 10% year-over-year, with an Adjusted EBITDA margin of 40.1% [6][15] - Adjusted EPS increased 10% year-over-year to $3.62, driven by strong Adjusted EBITDA growth and lower interest expense [6][15] Business Line Data and Key Metrics Changes - Latin America Payments and Solutions grew 22% year-over-year, benefiting from acquisitions and strong performance in Brazil [5][8] - Merchant Acquiring revenue grew 5% year-over-year, supported by higher sales volume [5][12] - Payment Services Puerto Rico grew 4% year-over-year, driven by ATH Móvil Business and higher transaction volumes [5][12] - Business Solutions revenue grew 3% year-over-year, despite a 10% discount to Popular [5][12] Market Data and Key Metrics Changes - More than 40% of revenues will now be generated outside of Puerto Rico [3][4] - Positive trends in employment and tourism in Puerto Rico, with healthy sales volume and transaction growth [7][12] - In Latin America, revenue increased by 22% year-over-year, with a 24% increase on a constant currency basis [7][8] Company Strategy and Development Direction - The company focuses on organic growth, M&A expansion, and strengthening its position in the payments and financial services market [3][4] - Recent acquisitions, including Tecnobank and Dimensa, are aimed at enhancing product offerings and customer base [3][8] - The company is embedding AI across multiple products, particularly in risk management and fraud monitoring [9][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable organic growth and a strong pipeline for 2026 [3][32] - The macroeconomic environment in Puerto Rico remains stable, supporting growth [50] - The company expects reported revenue for 2026 to be in the range of $1.024 billion to $1.036 billion, representing growth of 9.9% to 11.2% year-over-year [25][31] Other Important Information - The board approved a share repurchase program of up to $150 million through December 31, 2027 [6][23] - The company generated approximately $227 million in operating cash flows and returned approximately $82 million to shareholders [6][22] Q&A Session Summary Question: Can you provide additional color on the pipeline commentary in Latin America? - Management indicated that the pipeline is healthy, with significant client wins such as Banco de Chile and Grupo Aval expected to impact growth in 2026 [34][36] Question: What made the Dimensa acquisition attractive? - The acquisition provides entry into a new vertical with insurance and significant cross-sell opportunities, leveraging existing client relationships [38][39] Question: Should we expect the pace of M&A activity to continue? - Management confirmed that they will continue to pursue M&A opportunities, especially as they integrate Dimensa and leverage their growing presence in the region [42][43] Question: How is ATH Móvil performing? - ATH Móvil continues to show strong growth, being a preferred payment method in Puerto Rico, with double-digit growth reported [45][46] Question: What is the perspective on macro trends in Puerto Rico for 2026? - Management noted a stable macroeconomic environment, which is expected to support continued growth [50]

Fourth Quarter Earnings Conference Call February 26, 2026 #FF6C0C #0DD3AD #58595B Font: #7D868C #58595B Font: #4C5B69 #7D868C #4C5B69 Foward Looking Statements Certain statements in this presentation constitute "forward-looking statements" within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities A ...