EVERTEC (EVTC) Is Up 6.4% After Raising Full-Year Guidance on Strong Q3 Results – Has the Bull Case Changed?

• EVERTEC, Inc. recently reported third quarter 2025 earnings, posting sales of US$228.59 million and net income of US$32.86 million, both higher than the same period a year ago, and raised its full-year 2025 revenue and profit guidance.
• Stronger sales and raised expectations suggest EVERTEC is benefiting from rising digital payments demand and positive business momentum in Latin America and the Caribbean.
• We'll examine how EVERTEC's upgraded guidance, reflecting higher forecasted revenue and earnings, may influence its long-term investment outlook.

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EVERTEC Investment Narrative Recap

To be a shareholder in EVERTEC, you need to believe in the ongoing shift toward digital payments in Latin America and the Caribbean, and the company's ability to grow alongside those trends while managing its risks. The recent quarterly results and raised revenue guidance point to continued business momentum, although the biggest short-term catalyst remains robust transaction growth, while reliance on large customers like Popular, Inc. still poses concentration risk. This news affirms strength, but those core dynamics remain essentially unchanged for now.

EVERTEC's updated full-year 2025 revenue guidance is the most relevant recent announcement, projecting US$921 million to US$927 million in revenue and higher earnings per share. This outlook supports optimism about digital payments adoption, yet also frames the importance of sustaining growth amid ongoing exposure to large single-client contracts, especially as Popular, Inc. contract pricing is set to shift in Q4. But even with the upgraded forecasts, investors should not overlook...

Read the full narrative on EVERTEC (it's free!)

EVERTEC's outlook forecasts $1.0 billion in revenue and $193.8 million in earnings by 2028. Achieving these targets assumes a 5.0% annual revenue growth rate and an earnings increase of about $56 million from current earnings of $137.9 million.

Uncover how EVERTEC's forecasts yield a $33.80 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 3 distinct fair value estimates, ranging from US$30.64 up to US$56.35. As you consider these opinions, keep in mind that customer concentration could rapidly shift the outlook for EVERTEC’s earnings and stability.

Explore 3 other fair value estimates on EVERTEC - why the stock might be worth as much as 94% more than the current price!

Build Your Own EVERTEC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EVERTEC research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free EVERTEC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EVERTEC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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