Earnings

What To Expect From EVERTEC’s (EVTC) Q2 Earnings

What To Expect From EVERTEC’s (EVTC) Q2 Earnings

Payment processing company EVERTEC (NYSE:EVTC) will be reporting results this Tuesday after the bell. Here’s what to expect.

EVERTEC missed analysts’ revenue expectations last quarter, reporting revenues of $247.9 million, up 8.4% year on year. It was a strong quarter for the company, with full-year revenue guidance exceeding analysts’ expectations.

Is EVERTEC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting EVERTEC’s revenue to grow 14.6% year on year, improving from the 8.3% increase it recorded in the same quarter last year.

EVERTEC Total Revenue
EVERTEC Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. EVERTEC rarely misses Wall Street’s revenue estimates.

Looking at EVERTEC’s peers in the financial services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Farmer Mac delivered year-on-year revenue growth of 24.9%, beating analysts’ expectations by 3.4%, and PROG reported revenues up 22.3%, topping estimates by 0.8%. Farmer Mac traded up 3.5% following the results while PROG was down 4.4%.

Read our full analysis of Farmer Mac’s results here and PROG’s results here.

There has been positive sentiment among investors in the financial services segment, with share prices up 2.4% on average over the last month. EVERTEC is up 5.7% during the same time and is heading into earnings with an average analyst price target of $32 (compared to the current share price of $30.44).

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