Evertec Inc Stock Price, News & Analysis

EVERTEC (NYSE: EVTC) announced a donation of up to $250,000 for hurricane relief in Puerto Rico, including support for affected employees. From September 23 to October 7, the company will match online donations made through the ATH Móvil application up to $100,000, with a $5,000 cap per organization. This initiative aims to aid local institutions in recovery efforts post-Hurricane Fiona.

Popular, Inc. (NASDAQ:BPOP) has successfully sold its remaining 7,065,634 shares of EVERTEC, Inc. (NYSE:EVTC). This includes 6,262,293 shares sold through an underwritten public offering, generating approximately $219.8 million in total proceeds.

With an after-tax gain of around $131 million, Popular plans to use these gains for common stock repurchases, enhancing shareholder value. Following this transaction, Popular no longer holds any shares of EVERTEC.

EVERTEC, Inc. (NYSE: EVTC) has priced a secondary offering of 6,262,293 shares at $32.00 each, expected to close by August 15, 2022. The Selling Stockholder, Popular, Inc. (NASDAQ: BPOP), will net all proceeds from this sale, while EVERTEC itself will not receive any financial benefits. Concurrently, EVERTEC has agreed to repurchase $25 million worth of its shares from the Selling Stockholder post-offering. This move will likely lead to the Selling Stockholder divesting all equity in EVERTEC following the completion of this transaction.

EVERTEC has announced an underwritten secondary offering of 6,355,694 shares of common stock by Selling Stockholder Popular, Inc. The proceeds from this offering will go entirely to Popular, Inc., as EVERTEC will not sell any shares or receive any proceeds. Concurrently, EVERTEC will repurchase approximately $25 million of its common stock from Popular, Inc. This repurchase is subject to the offering’s completion but is not contingent on it. After the offering and repurchase, Popular, Inc. will no longer hold equity in EVERTEC.

Evertec reported an 8% revenue increase in Q2 2022, totaling $160.6 million, driven by transaction volume growth in Puerto Rico and Latin America. However, GAAP net income fell 32% to $33.6 million, reflecting a $4.1 million software impairment and rising operational costs. Adjusted EBITDA dropped 9% to $73.4 million, with a margin decrease to 45.7%. The company narrowed its 2022 revenue outlook to $607-$615 million, forecasting adjusted EPS between $2.52 and $2.60, down from $2.74 in 2021. Share repurchases amounted to $14 million with $115 million remaining in the program.

EVERTEC, Inc. (NYSE: EVTC) has declared a quarterly dividend of $0.05 per share, payable on September 2, 2022, to shareholders of record as of August 8, 2022. This announcement reflects the Board's commitment to returning value to shareholders, with plans for regular future declarations subject to market conditions. EVERTEC operates one of the leading transaction processing networks in Puerto Rico, the Caribbean, and Latin America, handling over three billion transactions annually.

Popular, Inc. reported net income of $211.4 million for Q2 2022, slightly down from $211.7 million in Q1 2022. The net interest margin increased to 3.09% from 2.75%, aided by higher interest rates and loan growth across most categories, except mortgages. Non-performing loans decreased by $42 million, with a ratio of 1.6% of total loans. Total assets grew by $2 billion, while deposits increased by $2.5 billion. The bank's Common Equity Tier 1 ratio remained strong at 16.39%.

EVERTEC, Inc. (NYSE: EVTC) will host a conference call on August 4, 2022, at 4:30 p.m. ET to discuss second-quarter financial results. The call features President and CEO Mac Schuessler and CFO Joaquin Castrillo. A press release will be issued after market close on the same day. Interested parties can access the call by dialing (888) 338-7153 or through the company’s website. EVERTEC is a leading transaction processing company in Puerto Rico and Latin America, managing electronic payment networks and processing over three billion transactions annually.

EVERTEC, Inc. (NYSE: EVTC) has successfully closed its Popular Transaction and the acquisition of BBR, SpA for approximately USD$53 million. The Popular Transaction entails significant extensions to commercial agreements with Banco Popular of Puerto Rico, enhancing their merchant acquiring relationship, including a revenue-sharing provision. The BBR acquisition expands EVERTEC's operations into Chile and Peru, reinforcing its growth strategy in Latin America. These developments are pivotal for future growth and market presence.