Welcome to our dedicated page for Evertec news (Ticker: EVTC), a resource for investors and traders seeking the latest updates and insights on Evertec stock.
Overview
Evertec Inc serves as a comprehensive transaction processing enterprise in Latin America and the Caribbean, offering secure and efficient transaction processing and payment processing solutions that underpin the electronic payments ecosystem. With operations spanning multiple Latin American countries, Evertec delivers a robust network that is essential for processing millions of transactions through its advanced, mission-critical technology platform.
Core Business Areas and Service Offerings
Evertec has built a diversified portfolio of services that not only supports the day-to-day operations of banks and merchants but also bolsters the financial infrastructure of entire regions. The company’s service suite includes:
- Merchant Acquiring: Providing essential payment acceptance solutions that facilitate secure credit, debit, and PIN-based transactions.
- Payment Processing: Operating sophisticated electronic payment networks that ensure transaction integrity and security.
- Core Banking and Cash Processing: Delivering vital back-end processing systems that enable efficient management of cash and core banking operations.
- Technology Outsourcing and Business Solutions: Offering comprehensive technology services that support operational efficiency for financial institutions and large organizations.
Operational Excellence and Technological Integration
Evertec is distinguished by its ability to merge high-tech solutions with everyday financial operations. Its innovative ATH network is one of the foremost personal identification number (PIN) debit networks in Latin America, ensuring a secure and reliable processing environment for customers. The company’s integrated technology solutions are designed to meet the rigorous demands of modern financial transactions, offering enhanced security, reliability, and efficiency across a spectrum of services. This integration of technology and service delivery is achieved through highly scalable systems that minimize downtime and ensure uninterrupted service for critical financial operations.
Market Position and Competitive Landscape
In a market where secure transaction processing is vital, Evertec has secured a strategic position by consistently providing reliable services to a diverse array of clients. It operates in a competitive environment that includes multiple regional and international players. The company differentiates itself through its comprehensive service offerings, deep local market expertise and commitment to technological innovation. Its ability to serve a wide range of client needs—from large financial institutions to government agencies—ensures a diversified revenue structure and reinforces its market credibility.
Customer Base and Geographic Reach
Evertec caters to a broad spectrum of customers including major financial institutions, prominent merchants, multinational corporations, and government agencies. This diversified customer base not only strengthens its operational stability but also provides a unique insight into the regional market dynamics. Operating from its base in Puerto Rico and extending its reach to numerous Latin American countries, Evertec is well positioned to offer tailored solutions that address the specific challenges and regulatory environments of various markets.
Expertise, Experience, and Reliability
The company reinforces its expertise by leveraging years of experience in transaction technology, which is critical for maintaining the integrity and efficiency of payment processing. Evertec’s commitment to security and innovation is evident in its adoption of industry best practices and state-of-the-art technology, ensuring that it meets the evolving demands of global financial services. Every aspect of its business is designed to enhance trust with clients, underpinned by a resilient technological backbone and a dedicated team of professionals well-versed in transaction management and financial operations.
Strategic Business Model and Operational Resilience
Evertec's business model is focused on providing scalable, secure and compliant solutions that address the operational challenges of electronic transactions. By integrating a spectrum of services from merchant acquiring to technology outsourcing, the company creates a comprehensive ecosystem that supports the entire payment lifecycle. The strategic use of advanced processing technology and a widespread operational footprint across Latin America allows Evertec to respond adeptly to market demands and regulatory changes, ensuring stability and continuity in its service offerings. The company’s systematic approach to deploying secure financial technologies demonstrates an in-depth understanding of the intricate relationship between technology, regulation, and operational risk management.
Conclusion
In summary, Evertec Inc stands as a robust transaction processing business with a broad range of services that support the financial infrastructures of Latin America and the Caribbean. Its focus on secure and efficient payment processing, coupled with a diverse array of business solutions, firmly establishes its operational importance and market stability. Whether through its innovative ATH network or its comprehensive suite of technological services, Evertec continues to play a pivotal role in enabling secure and streamlined financial transactions, making it an integral component of the regional financial services ecosystem.
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
With an after-tax gain of around
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.
Popular, Inc. (BPOP) has completed the acquisition of assets from Evertec Group, enhancing its digital banking services and commercial cash management applications. This move allows Popular's Banco Popular de Puerto Rico (BPPR) to improve flexibility in technology partnerships, reduce service costs, and strengthen its customer service capabilities. The acquisition involved 4,589,169 shares of Evertec common stock, valued at $169 million, leading to an estimated after-tax gain of $112 million. However, the transaction impacts Popular's tangible book value negatively by approximately $55 million.
EVERTEC, Inc. (NYSE: EVTC) announced that its CEO Mac Schuessler and CFO Joaquin Castrillo will present at William Blair's 42nd Annual Growth Stock Conference at 2:40 p.m. CT on June 8, 2022. The event will feature a fireside chat, which interested parties can listen to live via the investor relations section of the company’s website. A replay will be available post-event. EVERTEC is a leading transaction processing business in Puerto Rico, the Caribbean, and Latin America, processing over three billion transactions annually.
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