EVERTEC, Inc. (EVTC) Q2 2025 Earnings Call Transcript
Earnings Call Overview: EVERTEC, Inc. held its Q2 2025 earnings call on July 30, 2025, featuring key executives discussing the company's financial performance and growth across all sectors.
Forward-Looking Statements: The call included forward-looking statements and non-GAAP financial measures, with a reminder to consider cautionary statements from their earnings release and SEC reports.
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Evertec Acquires Brazilian B2B Tech Firm Dimensa for $181M
- Acquisition Overview: Evertec has entered into a definitive agreement to acquire Dimensa for R$950M (approximately US$181M), which will be executed through its wholly owned subsidiary, Evertec Brasil Informática, reflecting the company's commitment to expanding in the Brazilian market.
- Customer Base Expansion: This acquisition will expand Evertec's customer base to over 15,000 financial institutions, further solidifying its leadership position in Brazil's fintech sector and enhancing its competitive edge in the market.
- Product Portfolio Enhancement: The deal will enhance Evertec's product offerings with advanced risk management and insurance technology platforms, increasing its technological capabilities in financial services to meet the growing demands of its clients.
- Regulatory Approval Requirements: The transaction is subject to approval from Brazil's antitrust authority, CADE, and is expected to close in Q2 2026, which, if successful, will provide Evertec with long-term strategic benefits.
Evertec Acquires Dimensa to Enhance Product Offering
- Acquisition Overview: Evertec announced the acquisition of Brazilian B2B technology provider Dimensa through its wholly-owned subsidiary Evertec Brasil Informática S.A., with a transaction valued at R$950 million (approximately USD $181 million), expected to be financed with existing liquidity and anticipated to close in Q2 2026.
- Market Leadership Enhancement: This acquisition will expand Evertec's customer base in Brazil's fintech sector to over 15,000 clients, strengthening its market share in key areas such as Funds, Banking, Risk, and Insurance, thereby solidifying its leadership position in the industry.
- Portfolio Diversification: By integrating Dimensa's technology and talent, Evertec will be able to offer a more comprehensive suite of solutions, including advanced risk management and insurance platforms, accelerating the company's innovation pipeline to meet evolving customer needs.
- Enhanced Customer Value: The integration of Dimensa's capabilities will improve Evertec's ability to deliver seamless end-to-end solutions, enhancing operational efficiency and customer satisfaction, while supporting clients' growth and digital transformation initiatives, further boosting market competitiveness.
EVTC vs. MA: Which Stock is the Better Buy for Value Investors Right Now?
Comparison of Evertec and MasterCard: Evertec (EVTC) currently holds a Zacks Rank of #2 (Buy), indicating a stronger earnings outlook compared to MasterCard (MA), which has a Zacks Rank of #3 (Hold).
Valuation Metrics: EVTC has a forward P/E ratio of 8.14 and a PEG ratio of 1.02, while MA has a forward P/E of 34.46 and a PEG ratio of 2.22, suggesting that EVTC is more attractively valued.
Value Grades: Evertec has a Value grade of A based on various financial metrics, while MasterCard has a Value grade of D, further supporting the argument for EVTC as the better investment option.
Investment Recommendations: Zacks Investment Research highlights that EVTC's stronger estimate revisions and valuation metrics make it a superior choice for value investors at this time.
FIS Enhances Asset Finance Platform with New SaaS Upgrade
FIS Asset Finance Solution Enhancement: Fidelity National Information Services (FIS) has upgraded its Asset Finance solution with a SaaS-based cloud offering, enhancing operational efficiency and lifecycle management for auto finance, which includes loans and leases.
Impact on Borrowers and Lenders: The new solution provides lenders with tools to modernize operations and offers borrowers seamless self-service access and personalized experiences, addressing rising customer expectations and operational challenges in the asset finance sector.
Financial Performance and Market Position: FIS's total revenues increased by 4.5% year-over-year in the first nine months of 2025, although its shares have seen a decline of 9.9% over the past three months, contrasting with the industry average drop of 17.7%.
Comparative Stock Performance: Other companies in the business services sector, such as FirstCash, EVERTEC, and FTI Consulting, have shown varying performance, with FirstCash gaining 9.9% in the last three months while EVERTEC and FTI Consulting experienced declines.
Evertec (EVTC) Receives Upgrade to Buy: Key Information You Need to Know
Evertec's Zacks Rank Upgrade: Evertec (EVTC) has been upgraded to a Zacks Rank #2 (Buy) due to a positive trend in earnings estimates, indicating a favorable outlook for its stock price.
Impact of Earnings Estimates: The Zacks rating system, which focuses on earnings estimate revisions, shows a strong correlation between these revisions and stock price movements, suggesting that Evertec's improving earnings potential could lead to higher stock valuations.
Zacks Rank System Effectiveness: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Buy" or "Strong Buy" rating, highlighting Evertec's strong position among its peers.
Quantum Computing Insights: The article also discusses the rapid advancement of quantum computing, with major tech companies integrating it into their infrastructure, and mentions a report identifying stocks poised to lead in this emerging field.
Susquehanna Keeps Neutral Rating on Evertec, Reduces Price Target to $32
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Exclusive Stories: The platform provides unique stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from shared knowledge and resources.
Market Intelligence: Benzinga Pro is positioned as a source for the most accurate and timely stock market intelligence available.
Evertec Acquires Brazilian B2B Tech Firm Dimensa for $181M
- Acquisition Overview: Evertec has entered into a definitive agreement to acquire Dimensa for R$950M (approximately US$181M), which will be executed through its wholly owned subsidiary, Evertec Brasil Informática, reflecting the company's commitment to expanding in the Brazilian market.
- Customer Base Expansion: This acquisition will expand Evertec's customer base to over 15,000 financial institutions, further solidifying its leadership position in Brazil's fintech sector and enhancing its competitive edge in the market.
- Product Portfolio Enhancement: The deal will enhance Evertec's product offerings with advanced risk management and insurance technology platforms, increasing its technological capabilities in financial services to meet the growing demands of its clients.
- Regulatory Approval Requirements: The transaction is subject to approval from Brazil's antitrust authority, CADE, and is expected to close in Q2 2026, which, if successful, will provide Evertec with long-term strategic benefits.
Evertec Acquires Dimensa to Enhance Product Offering
- Acquisition Overview: Evertec announced the acquisition of Brazilian B2B technology provider Dimensa through its wholly-owned subsidiary Evertec Brasil Informática S.A., with a transaction valued at R$950 million (approximately USD $181 million), expected to be financed with existing liquidity and anticipated to close in Q2 2026.
- Market Leadership Enhancement: This acquisition will expand Evertec's customer base in Brazil's fintech sector to over 15,000 clients, strengthening its market share in key areas such as Funds, Banking, Risk, and Insurance, thereby solidifying its leadership position in the industry.
- Portfolio Diversification: By integrating Dimensa's technology and talent, Evertec will be able to offer a more comprehensive suite of solutions, including advanced risk management and insurance platforms, accelerating the company's innovation pipeline to meet evolving customer needs.
- Enhanced Customer Value: The integration of Dimensa's capabilities will improve Evertec's ability to deliver seamless end-to-end solutions, enhancing operational efficiency and customer satisfaction, while supporting clients' growth and digital transformation initiatives, further boosting market competitiveness.
EVTC vs. MA: Which Stock is the Better Buy for Value Investors Right Now?
Comparison of Evertec and MasterCard: Evertec (EVTC) currently holds a Zacks Rank of #2 (Buy), indicating a stronger earnings outlook compared to MasterCard (MA), which has a Zacks Rank of #3 (Hold).
Valuation Metrics: EVTC has a forward P/E ratio of 8.14 and a PEG ratio of 1.02, while MA has a forward P/E of 34.46 and a PEG ratio of 2.22, suggesting that EVTC is more attractively valued.
Value Grades: Evertec has a Value grade of A based on various financial metrics, while MasterCard has a Value grade of D, further supporting the argument for EVTC as the better investment option.
Investment Recommendations: Zacks Investment Research highlights that EVTC's stronger estimate revisions and valuation metrics make it a superior choice for value investors at this time.
FIS Enhances Asset Finance Platform with New SaaS Upgrade
FIS Asset Finance Solution Enhancement: Fidelity National Information Services (FIS) has upgraded its Asset Finance solution with a SaaS-based cloud offering, enhancing operational efficiency and lifecycle management for auto finance, which includes loans and leases.
Impact on Borrowers and Lenders: The new solution provides lenders with tools to modernize operations and offers borrowers seamless self-service access and personalized experiences, addressing rising customer expectations and operational challenges in the asset finance sector.
Financial Performance and Market Position: FIS's total revenues increased by 4.5% year-over-year in the first nine months of 2025, although its shares have seen a decline of 9.9% over the past three months, contrasting with the industry average drop of 17.7%.
Comparative Stock Performance: Other companies in the business services sector, such as FirstCash, EVERTEC, and FTI Consulting, have shown varying performance, with FirstCash gaining 9.9% in the last three months while EVERTEC and FTI Consulting experienced declines.
Evertec (EVTC) Receives Upgrade to Buy: Key Information You Need to Know
Evertec's Zacks Rank Upgrade: Evertec (EVTC) has been upgraded to a Zacks Rank #2 (Buy) due to a positive trend in earnings estimates, indicating a favorable outlook for its stock price.
Impact of Earnings Estimates: The Zacks rating system, which focuses on earnings estimate revisions, shows a strong correlation between these revisions and stock price movements, suggesting that Evertec's improving earnings potential could lead to higher stock valuations.
Zacks Rank System Effectiveness: The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Buy" or "Strong Buy" rating, highlighting Evertec's strong position among its peers.
Quantum Computing Insights: The article also discusses the rapid advancement of quantum computing, with major tech companies integrating it into their infrastructure, and mentions a report identifying stocks poised to lead in this emerging field.
Susquehanna Keeps Neutral Rating on Evertec, Reduces Price Target to $32
Fastest News Alerts: Benzinga Pro offers real-time intelligence to help traders stay updated and make informed decisions in the stock market.
Exclusive Stories: The platform provides unique stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from shared knowledge and resources.
Market Intelligence: Benzinga Pro is positioned as a source for the most accurate and timely stock market intelligence available.
