Evertec (NYSE:EVTC) Shares Down 11.1% on Disappointing Earnings

Evertec, Inc. (NYSE:EVTC) traded down 11.1% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $25.47 and last traded at $25.0340. 92,845 shares changed hands during trading, a decline of 78% from the average session volume of 427,322 shares. The stock had previously closed at $28.16.

The business services provider reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.01). Evertec had a return on equity of 31.40% and a net margin of 13.95%.The business had revenue of $247.92 million during the quarter, compared to the consensus estimate of $248.99 million. During the same quarter in the previous year, the firm earned $0.87 earnings per share. The firm’s revenue for the quarter was up 8.4% compared to the same quarter last year. Evertec has set its FY 2026 guidance at 3.860-3.980 EPS.

Evertec Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Monday, May 11th will be issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, May 11th. Evertec’s payout ratio is presently 9.66%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Raymond James Financial reiterated an “outperform” rating and issued a $34.00 target price on shares of Evertec in a report on Thursday. Wall Street Zen downgraded shares of Evertec from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Evertec in a report on Friday, March 27th. Finally, Zacks Research downgraded shares of Evertec from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 20th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Evertec presently has a consensus rating of “Hold” and a consensus target price of $34.00.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EVTC. Richardson Financial Services Inc. grew its position in Evertec by 132.6% during the third quarter. Richardson Financial Services Inc. now owns 763 shares of the business services provider’s stock valued at $26,000 after purchasing an additional 435 shares in the last quarter. Hantz Financial Services Inc. grew its position in Evertec by 189.7% during the fourth quarter. Hantz Financial Services Inc. now owns 1,072 shares of the business services provider’s stock valued at $31,000 after purchasing an additional 702 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in Evertec during the fourth quarter valued at approximately $31,000. Clearstead Advisors LLC grew its position in Evertec by 194.5% during the fourth quarter. Clearstead Advisors LLC now owns 1,240 shares of the business services provider’s stock valued at $36,000 after purchasing an additional 819 shares in the last quarter. Finally, Global Retirement Partners LLC grew its position in Evertec by 53.1% during the fourth quarter. Global Retirement Partners LLC now owns 1,471 shares of the business services provider’s stock valued at $43,000 after purchasing an additional 510 shares in the last quarter. 96.80% of the stock is owned by hedge funds and other institutional investors.

Evertec Price Performance

The stock’s 50-day moving average is $28.63 and its 200 day moving average is $28.81. The stock has a market capitalization of $1.48 billion, a PE ratio of 11.62, a P/E/G ratio of 0.88 and a beta of 0.80. The company has a quick ratio of 2.07, a current ratio of 1.97 and a debt-to-equity ratio of 1.56.

Evertec Company Profile

Evertec, Inc (NYSE: EVTC) is a leading full‐service transaction processor in Puerto Rico, Latin America and the Caribbean. The company delivers integrated technology solutions for electronic payments, providing financial institutions, merchants and governments with secure and scalable platforms to accept, process and settle transactions across card, ATM, debit and digital channels. Headquartered in San Juan, Puerto Rico, Evertec supports both domestic and cross‐border payment flows, enabling clients to streamline operations and expand their digital commerce capabilities.

Evertec’s suite of services includes merchant acquiring, payment gateway connectivity, ATM and point‐of‐sale network management, and fraud prevention solutions.