Why EVERTEC (EVTC) Is Up 9.2% After Strong Q2 Results and Expanded Buyback Program

• EVERTEC, Inc. recently reported strong second quarter 2025 results, with revenue growing to US$229.61 million and net income rising to US$40.47 million, alongside an expanded share buyback authorization and program extension through December 2026.
• These developments highlight the company's focus on both operational performance and returning capital to shareholders, signaling increased management confidence in the company’s financial position.
• Next, we'll examine how EVERTEC's earnings strength and expanded buyback program potentially reshape the company's investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

EVERTEC Investment Narrative Recap

To be an EVERTEC shareholder, you'd need to believe the company can sustain earnings growth through disciplined execution across Puerto Rico and Latin America, while managing exposure to economic trends and key customer relationships. The recent strong Q2 2025 results and expanded buyback authorization add to investor confidence, but do not fundamentally change the short-term focus on integrating the Sinqia acquisition and monitoring foreign currency pressures, nor do they diminish the risk of softening local or regional economic activity. Among recent announcements, the increased buyback plan to US$150 million and extension through December 2026 stands out, reinforcing attention on efficient capital allocation alongside core revenue growth efforts. While this supports the near-term investment story, ongoing success depends on how execution evolves around integration efforts, organic pipeline wins, and managing client concentration. On the other hand, investors should be aware that sustained outperformance will hinge on managing the risk of revenue declines tied to...

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

EVERTEC's outlook anticipates $999.0 million in revenue and $182.9 million in earnings by 2028. This implies a 4.8% annual revenue growth rate and an earnings increase of $53.6 million from the current $129.3 million level.

Uncover how EVERTEC's forecasts yield a $39.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members see fair value estimates for EVERTEC ranging from US$33.04 to US$58.84, with just two perspectives captured. While profit growth has recently accelerated, foreign currency headwinds remain a crucial consideration for future returns and overall business resilience.

Explore 2 other fair value estimates on EVERTEC - why the stock might be worth as much as 63% 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 3 key rewards and 2 important warning signs 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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