Evertec Stock Climbs 16.11% to $37.55 on Record Revenue and Growth Projections

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Evertec’s 22% Revenue Surge Was Significant Contributor to Stock Climb

Evertec experienced a significant surge in its stock value, climbing 16.11% to $37.55, after the company disclosed strong financial results for Q4 2024. The full-service transaction processing business reported a record-breaking revenue of $845.5 million for the fiscal 2024, marking a substantial 22% increase from the prior year. This growth was driven by a combination of organic expansion and strategic acquisitions.

The company’s adjusted EBITDA also saw a notable rise, reaching $340.2 million, which represents a 17% YoY growth, and maintained a strong adjusted EBITDA margin of 40.2%. The successful integration of Sinqia, along with the acquisitions of Grandata and Nubity, significantly contributed to the company’s growth, particularly in the Latin American region. LATAM revenue increased by 62% YoY, now making up approximately 33% of all revenue.

Evertec’s focus on margin optimization proved effective, with the fourth quarter adjusted EBITDA margin reaching 40.9%, a 410 basis-point increase from the previous year. The company also reported strong performance in its Merchant Acquiring and Payments segments in Puerto Rico, with revenue increases of 11% and 6%, respectively.

Looking ahead, Evertec provided a 2025 revenue outlook of $889 to $899 million, projecting a growth rate of 5.1% to 6.3%. Adjusted EPS growth for 2025 is expected to be between 1.8% and 5.2%. However, the company acknowledged potential challenges, including currency headwinds, particularly the devaluation of the Brazilian real, and the upcoming 10% discount on Popular services, which is expected to impact revenue and adjusted EBITDA.

The economic activity index in Puerto Rico also saw a slight decrease. Despite these challenges, Evertec maintains a strong liquidity position of approximately $468 million and a robust business pipeline in Latin America, positioning it for continued growth. The company paid roughly $95 million to shareholders via dividends and share purchases.