EVTC Earnings Prediction
The chart below shows how EVTC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EVTC sees a +1.42% change in stock price 10 days leading up to the earnings, and a -0.26% change 10 days following the report. On the earnings day itself, the stock moves by -0.85%. This data can give you a slight idea of what to expect for the next quarter's release.
EVTC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
216.40M
11.19%
2.17%
Gross Margin
39.56%
16.52%
10.78%
Operating Margin
20.14%
25.72%
-0.15%
Net Margin
18.79%
209.56%
57.90%
EPS
0.62
264.71%
63.16%
No Data Available
EVTC Earnings Analysis
Evertec Inc Corporation (EVTC.N) Earnings Conference Call
Positive
Strong Revenue Growth: Revenue for 2024 was $845.5 million, a 22% increase over the prior year, indicating strong overall growth.
Merchant Acquiring Growth: Merchant Acquiring segment grew by 11% due to pricing initiatives and increased sales volume, showcasing effective strategies in this area.
LATAM Revenue Surge: LATAM revenue increased by 62% year-over-year, driven by the full year contribution of Sinqia and organic growth, highlighting successful expansion efforts.
Adjusted EBITDA Growth: Adjusted EBITDA for 2024 was $340.2 million, up approximately 17% year-over-year, reflecting improved operational efficiency and expense management.
Adjusted EPS Growth: Adjusted EPS of $3.28 was up 16% year-over-year, driven by strong adjusted EBITDA growth and lower tax expenses, indicating improved profitability.
Strong Cash Generation: Generated approximately $260 million in operating cash flows, demonstrating strong cash generation capabilities.
Shareholder Value Commitment: Returned approximately $95 million to shareholders through share repurchases and dividends, reflecting commitment to shareholder value.
Strong Liquidity Position: Liquidity remains strong at approximately $468 million as of December 31, indicating financial stability and capacity for future investments.
Integration Success and Growth: Successful integration of Sinqia has led to reaccelerated growth, with positive customer engagement and feedback on platform modernization.
Strategic Partnership in LATAM: Signed a deal with Grupo Aval, one of the largest financial groups in Colombia, indicating successful conversion of business opportunities in LATAM.
Negative
EBITDA Margin Decline: Adjusted EBITDA margin decreased by approximately 180 basis points from the previous year, primarily due to the inclusion of Sinqia, which has margins below the corporate average.
Revenue Growth Forecast: The revenue growth for 2025 is expected to be between 5.1% to 6.3%, which is significantly lower than the 22% growth achieved in 2024.
Client Attrition Impact: The company anticipates client attrition in 2025, most notably from Mercado Libre, which could negatively impact revenue.
Discount Impact on Revenue: The 10% discount on certain MSA services beginning in October 2025 is expected to impact revenue and adjusted EBITDA by approximately $4 million in Q4 2025, with a full annual run rate of $18 million expected in 2026.
Revenue Growth Limitations: The company does not expect the same tailwinds in 2025 from substantial pricing increases as experienced in 2024, which may limit revenue growth.
Revenue Growth Slowdown: In the Payments Puerto Rico and Caribbean segment, revenue growth is expected to be low-single digits, indicating a slowdown compared to previous performance.
Higher Tax Rate Impact: The adjusted effective tax rate is expected to be higher in 2025 due to a higher expected contribution from LATAM, which could affect net income.
Cash Balance Decline: The company reported a decrease in cash balance by approximately $29 million from the year ended 2023, indicating potential liquidity concerns.
EVTC FAQs
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EVTC Earning Call Sentiment
EVERTEC, Inc. (EVTC) Q4 2024 Earnings Call Transcript
EVTC.N
-0.53%Positive
The earnings call presents mixed signals. Positive factors include strong financial performance in 2024, robust pipeline development in LATAM, and shareholder returns. However, risks such as client attrition, regulatory issues, and supply chain challenges, along with a modest 2025 revenue growth guidance, offset these positives. The Q&A session highlighted some uncertainties, particularly regarding the performance of Sinqia and the Merchant segment. Given the market cap, the stock is likely to remain stable, resulting in a neutral sentiment prediction.
