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NASDAQ:MGIC
Magic Software Enterprises Ltd. Stock Earnings Reports
$13.30
+0.0600 (+0.453%)
At Close: Apr 17, 2025
Magic Software Enterprises Ltd. Earnings Calls
Q1 2025
(Upcoming)
| Release date | May 15, 2025 |
| EPS estimate | $0.250 |
| EPS actual | - |
| Revenue estimate | 143.8M |
| Revenue actual | - |
| Expected change | +/- 5.41% |
Q4 2024
Missed
$0.240 (-4.00%)
| Release date | Mar 11, 2025 |
| EPS estimate | $0.250 |
| EPS actual | $0.240 |
| EPS Surprise | -4.00% |
| Revenue estimate | 143.8M |
| Revenue actual | 142.582M |
| Revenue Surprise | -0.85% |
Q3 2024
Missed
$0.230 (-4.17%)
| Release date | Nov 18, 2024 |
| EPS estimate | $0.240 |
| EPS actual | $0.230 |
| EPS Surprise | -4.17% |
| Revenue estimate | 137M |
| Revenue actual | 142.968M |
| Revenue Surprise | 4.36% |
Q2 2024
Beat
$0.240 (9.09%)
| Release date | Aug 14, 2024 |
| EPS estimate | $0.220 |
| EPS actual | $0.240 |
| EPS Surprise | 9.09% |
| Revenue estimate | 132.69M |
| Revenue actual | 136.25M |
| Revenue Surprise | 2.68% |
Last 4 Quarters for Magic Software Enterprises Ltd.
Below you can see how MGIC performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.
Q2 2024
Beat
| Release date | Aug 14, 2024 |
| Fiscal end date | Jun 30, 2024 |
| Price on release | $10.22 |
| EPS estimate | $0.220 |
| EPS actual | $0.240 |
| EPS surprise | 9.09% |
| Date | Price |
|---|---|
| Aug 08, 2024 | $10.33 |
| Aug 09, 2024 | $10.31 |
| Aug 12, 2024 | $10.04 |
| Aug 13, 2024 | $10.33 |
| Aug 14, 2024 | $10.22 |
| Aug 15, 2024 | $10.45 |
| Aug 16, 2024 | $10.41 |
| Aug 19, 2024 | $10.54 |
| Aug 20, 2024 | $10.81 |
| 4 days before | -1.06% |
| 4 days after | 5.77% |
| On release day | 2.25% |
| Change in period | 4.65% |
Q3 2024
Missed
| Release date | Nov 18, 2024 |
| Fiscal end date | Sep 30, 2024 |
| Price on release | $11.01 |
| EPS estimate | $0.240 |
| EPS actual | $0.230 |
| EPS surprise | -4.17% |
| Date | Price |
|---|---|
| Nov 12, 2024 | $11.13 |
| Nov 13, 2024 | $11.24 |
| Nov 14, 2024 | $11.58 |
| Nov 15, 2024 | $11.42 |
| Nov 18, 2024 | $11.01 |
| Nov 19, 2024 | $10.96 |
| Nov 20, 2024 | $10.92 |
| Nov 21, 2024 | $10.99 |
| Nov 22, 2024 | $10.99 |
| 4 days before | -1.08% |
| 4 days after | -0.182% |
| On release day | -0.454% |
| Change in period | -1.26% |
Q4 2024
Missed
| Release date | Mar 11, 2025 |
| Fiscal end date | Dec 31, 2024 |
| Price on release | $13.39 |
| EPS estimate | $0.250 |
| EPS actual | $0.240 |
| EPS surprise | -4.00% |
| Date | Price |
|---|---|
| Mar 05, 2025 | $12.12 |
| Mar 06, 2025 | $11.84 |
| Mar 07, 2025 | $11.90 |
| Mar 10, 2025 | $12.85 |
| Mar 11, 2025 | $13.39 |
| Mar 12, 2025 | $13.99 |
| Mar 13, 2025 | $13.72 |
| Mar 14, 2025 | $13.88 |
| Mar 17, 2025 | $14.20 |
| 4 days before | 10.48% |
| 4 days after | 6.05% |
| On release day | 4.48% |
| Change in period | 17.16% |
Q1 2025
(Upcoming)
| Release date | May 15, 2025 |
| Fiscal end date | Mar 31, 2025 |
| Price on release | - |
| EPS estimate | $0.250 |
| EPS actual | - |
| Date | Price |
|---|---|
| Apr 11, 2025 | $13.12 |
| Apr 14, 2025 | $13.34 |
| Apr 15, 2025 | $13.28 |
| Apr 16, 2025 | $13.24 |
| Apr 17, 2025 | $13.30 |
Magic Software Enterprises Ltd. Earnings Call Transcript Summary of Q4 2024
Key Points for Investors - Magic Software Enterprises Q4 and 2024 Full Year Results
- Merger Announcement
- Magic Software has entered a non-binding memorandum of understanding with Matrix I.T. for a reverse triangular merger, where Matrix will acquire all of Magic's share capital. Post-merger, Magic shareholders will own 31.125% of Matrix.
- The merger is valued at approximately $2.1 billion, with an increase in combined valuation to $2.3 billion since the announcement.
- Following delisting from NASDAQ and the Tel Aviv Stock Exchange, the combined entity may explore re-listing on NASDAQ in the future.
- Financial Highlights for Q4 2024
- Revenue increased by 13.6% year-over-year to $142.6 million, attributed to strong demand for cloud and DevOps AI services.
- Operating income grew by 6.1% to $18.8 million.
- Non-GAAP net income was $11.5 million, slightly down from $11.6 million in Q4 2023.
- Cash and cash equivalents reached approximately $112.8 million, with total financial debt reduced from $82 million to $59 million.
- Annual Financial Performance for 2024
- Total revenue increased by 3.3% to $552.5 million.
- Non-GAAP operating income rose by 2.5% to $73.6 million.
- Non-GAAP net income attributable to Magic shareholders decreased by 5.7% to $45.7 million.
- Revenue Breakdown
- North American operations contributed $58.6 million to total revenue, reflecting a 14% increase.
- Israeli operations grew by 15.5% year-over-year to $62.7 million.
- Growth and Future Outlook
- Anticipation of revenue growth of 7.3% to 9.1% in 2025, projecting revenues between $593 million and $603 million.
- Continued demand for cloud and AI solutions, particularly in defense and digital transformation sectors, is expected to drive growth.
- Dividend Declaration
- A semi-annual cash dividend of $0.327 per share has been declared, totaling approximately $16.1 million, reflecting 75% of net income attributable to shareholders.
- Operational Efficiency
- Focus on maintaining operational margins while managing payroll and expenses.
- Emphasis on leveraging the combined strengths post-merger to expand market presence in both US and Israeli markets.
- Technology Investments
- Investment in AI technologies and cloud service offerings as drivers for future growth.
- Anticipating advancements in software development with new AI tools and methodologies.
Conclusion
The proposed merger with Matrix I.T. marks a significant strategic shift for Magic Software, projected to enhance competitive positioning and operational scale. While the company faces short-term challenges, the growth outlook appears positive, bolstered by strong demand for digital transformation initiatives and expanding service offerings in cloud and AI technologies. Investors should keep an eye on the merger's progress and its implications for future performance.
Magic Software Enterprises Ltd. Earnings History
Earnings Calendar
FAQ
When is the earnings report for MGIC?
Magic Software Enterprises Ltd. (MGIC) has scheduled its earnings report for May 15, 2025 before the markets open.
What is the MGIC price-to-earnings (P/E) ratio?
MGIC P/E ratio as of Apr 17, 2025 (TTM) is 17.63.
What is the MGIC EPS forecast?
The forecasted EPS (Earnings Per Share) for Magic Software Enterprises Ltd. (MGIC) for the first fiscal quarter 2025 is $0.250.
What are Magic Software Enterprises Ltd.'s retained earnings?
On its balance sheet, Magic Software Enterprises Ltd. reported retained earnings of $142.58 million for the latest quarter ending Dec 31, 2024.
What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.
Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.
What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
