It's been a pretty great week for EVERTEC, Inc. (NYSE:EVTC) shareholders, with its shares surging 13% to US$37.34 in the week since its latest yearly results. Revenues were US$845m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.73 were also better than expected, beating analyst predictions by 17%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on EVERTEC after the latest results.

See our latest analysis for EVERTEC

After the latest results, the six analysts covering EVERTEC are now predicting revenues of US$894.0m in 2025. If met, this would reflect a credible 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to US$2.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$896.5m and earnings per share (EPS) of US$1.82 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$36.40, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on EVERTEC, with the most bullish analyst valuing it at US$42.00 and the most bearish at US$30.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EVERTEC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that EVERTEC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 128 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like EVERTEC is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around EVERTEC's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on EVERTEC. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple EVERTEC analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for EVERTEC (of which 1 is significant!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.