EVERTEC Inc · Q2 2023 earnings

Briefing

Reported strong results driven by growth in payment segments and strategic growth plan execution.

EVERTEC reported a 4% increase in revenue to $167.1 million and a GAAP Net Income of $28.2 million, or $0.43 per diluted share. The company raised its annual guidance following a strong second quarter in both Puerto Rico and Latin America.

• Revenue increased 4% to $167.1 million.
• GAAP Net Income attributable to common shareholders decreased 16% to $28.2 million and decreased 9% to $0.43 per diluted share.
• Adjusted EBITDA increased to $74.5 million and Adjusted earnings per common share increased 6% to $0.71.
• Share repurchases totaled $9.5 million for the quarter.

Headline financials

Revenue & EPS history

The Company is revising its financial outlook for 2023 as follows: Total consolidated revenue is now anticipated to be between $652 million and $658 million representing growth of approximately 5% to 6% growth, compared with $644 to $652 million previously estimated, Adjusted earnings per common share between $2.75 to $2.83 representing approximately 9% to 12% growth as compared to $2.53 in 2022, as recast, compared with $2.59 to $2.68 previously estimated, We continue to expect capital expenditures to be approximately $70 million, We continue to expect an effective tax rate of approximately 16% to 17%.