MILWAUKEE, Jan. 9, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) has announced plans to release its fourth quarter 2025 financial results after the market closes on Monday, February 2, 2026. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Tuesday, February 3, 2026, to discuss the Company's results for the quarter ended December 31, 2025. Individuals interested in joining by telephone should register for the call "here" to receive the dial-in number and unique PIN ...

Core Insights - Magic Software Enterprises Ltd. has demonstrated strong performance as a small-cap tech stock, achieving record Q3 revenue of $161.7 million, reflecting a year-over-year increase of 13.1% driven by demand in IT consulting and enterprise software services [1] - The company maintained a stable gross margin of 27.3%, with GAAP operating income rising 13.6% to $17.1 million and non-GAAP operating profit increasing by 8.1% to $19.9 million, while net income reached $9.9 million, or $0.20 per diluted share, compared to $0.17 in the previous year [2] - CEO Guy Bernstein highlighted the company's all-time highs in revenues, gross profit, and operating income, attributing this success to sustained demand for digital, AI-driven, and cloud transformation solutions, as well as disciplined execution [3] Company Overview - Magic Software Enterprises Ltd., based in Israel, specializes in IT consulting, cloud integration, low-code development, and automation tools for mid- and large-enterprise clients globally [4] Future Outlook - The pending merger with Matrix I.T. is anticipated to enhance the company's scale, market reach, and technological depth, marking an exciting new phase for Magic Software [3]

Core Insights - MGIC Investment Corporation (MTG) shares closed at $28.38, near its 52-week high of $29.01, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Market Performance - MTG has a market capitalization of $6.54 billion, with an average trading volume of 1.83 million shares over the last three months [2] - Year-to-date, MTG shares have gained 19.7%, outperforming the Finance sector's growth of 13.2% and the Zacks S&P 500 composite's growth of 17.6% [3] - Compared to peers like Assurant, Inc. (AIZ), Horace Mann Educators Corporation (HMN), and Radian Group Inc. (RDN), which gained 7.2%, 17.4%, and 12% respectively, MTG has shown superior performance [4] Growth Drivers - MTG anticipates stronger insurance-in-force growth driven by new business and solid persistency, supported by higher home sales, increased cash purchases, and improved refinancing activity [7] - The company has a capital strength that allows for significant share buybacks, with $614 million authorized through 2027 [7] Valuation Metrics - MGIC Investment shares are trading at a price-to-book value of 1.23X, lower than the industry average of 2.24X, indicating a better entry point for investors [8] - The stock has a Value Score of B, highlighting its attractiveness as a value stock [8] Financial Performance - MTG's return on invested capital (ROIC) has been increasing, currently at 11%, significantly higher than the industry average of 2% [9] - Earnings have grown by 12% over the past five years, outperforming the industry average of 9.8% [11] - The company has consistently surpassed earnings estimates, with an average surprise of 14.21% over the last four quarters [12] Analyst Sentiment - Analysts have raised earnings estimates for MTG for 2025 and 2026, with the Zacks Consensus Estimate for 2025 earnings moving up by 3.6% [13] Future Projections - The Zacks Consensus Estimate for MGIC Investment's 2025 earnings per share indicates a year-over-year increase of 7.2%, with revenues projected at $1.22 billion, reflecting a 0.4% improvement [10] - For 2026, earnings and revenues are expected to increase by 0.4% and 2.6%, respectively, compared to 2025 estimates [10] Risk Management - MGIC Investment is experiencing a decline in claim filings, which is expected to strengthen its balance sheet and improve its financial profile [14] - The company is enhancing its capital position through capital contributions and reinsurance transactions [15] Shareholder Value - MTG's capital strength supports wealth distribution through share buybacks, reflecting strong mortgage credit performance [16] - The company is focused on growth through higher premiums, outstanding credit quality, and new business initiatives [17] - Solid growth projections and attractive valuations are expected to benefit MGIC Investment in the long term [18]

Market Performance Recap - The U.S. stock market rebounded on November 19, 2025, with major indexes ending multi-day losing streaks, driven by cautious optimism, particularly in the tech sector [1][2] - The S&P 500 rose by 0.4% to 6,642.16 points, while the Dow Jones Industrial Average increased by 0.1% to 46,138.77 points, both breaking four-session losing streaks [2] - The Nasdaq Composite led gains with a 0.6% increase to 22,564.23 points, while the Russell 2000 index saw a slight dip of less than 0.1% [2] Key Upcoming Market Events - Investors are anticipating significant economic data and corporate earnings, including the delayed September jobs report set for release on November 20, 2025 [3][4] - The minutes from the last Federal Reserve meeting indicated that many officials believe no further interest rate cuts are necessary this year, impacting traders' forecasts for monetary policy [3] Major Stock News and Earnings Recap - Nvidia's highly anticipated fiscal 2026 third-quarter earnings report is due after market close, with shares climbing between 2% and 3.2% ahead of the announcement [6] - Analysts forecast a substantial 56% revenue jump for Nvidia to approximately $54.9 billion for the August-October quarter [6] - Target's stock declined by 2.7% to 3.3% after reporting third-quarter sales that fell short of expectations, leading to a lowered full-year profit estimate [7] - TJX shares increased by 0.2% to 4% after better-than-expected quarterly results and raised fiscal 2026 guidance, with earnings per share of $1.28 and revenue up 7.5% year-over-year to $15.12 billion [7] - Lowe's shares rose by 4% to 6% after reporting stronger-than-expected third-quarter profit and raising its full-year sales projection [7] - Alphabet's shares jumped 3% to a new all-time intraday high following the announcement of its latest AI model, Gemini 3 [7] - Constellation Energy rallied by 5% to 5.6% after receiving a $1 billion loan from the U.S. Department of Energy to restart its nuclear power plant [7] Additional Corporate News - Amazon's stock remained relatively unchanged after a 4.4% drop due to a rating cut by Rothschild [10] - Medtronic shares increased by 4.7% after reporting strong second-quarter fiscal 2026 earnings of $1.36 per share, beating analyst estimates [10] - Amer Sports surged 8.5% following its third-quarter 2025 earnings report, which showed earnings of $0.33 per share, surpassing estimates [10] - Unity Software added 5.9% after announcing a partnership with Epic Games to integrate its games into the Fortnite platform [10] - La-Z-Boy shares soared 11% in premarket trading after reporting a year-over-year sales increase in its fiscal 2026 second quarter [10]

Core Insights - Magic Software reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share, but showing an increase from $0.23 per share a year ago, resulting in an earnings surprise of -13.79% [1] - The company achieved revenues of $161.66 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.43% and increasing from $142.97 million year-over-year [2] - Magic Software's stock has increased approximately 100.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $151.3 million, and for the current fiscal year, it is $1.09 on revenues of $605.1 million [7] - The estimate revisions trend for Magic Software was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which Magic Software belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Magic Software's stock may also be influenced by the upcoming earnings report from Salesforce.com, another company in the same industry, which is expected to report quarterly earnings of $2.85 per share, reflecting a year-over-year change of +18.3% [9][10]

Core Insights - Magic Software Enterprises Ltd. reported record-breaking financial results for the third quarter and the first nine months of 2025, with significant year-over-year growth in revenues, operating income, and net income [1][7][13]. Financial Performance for Q3 2025 - Revenues increased by 13.1% year-over-year to $161.7 million, up from $143.0 million in Q3 2024 [2][7]. - Gross profit rose by 11.4% to $44.2 million, with a gross margin of 27.3%, slightly down from 27.8% in the previous year [2][7]. - Operating income reached $17.1 million, a 13.6% increase from $15.1 million in Q3 2024, with a non-GAAP operating income of $19.9 million, up 8.1% from $18.5 million [2][7]. - Net income attributable to shareholders increased by 17.0% to $9.9 million, or $0.20 per diluted share, compared to $8.4 million, or $0.17 per diluted share, in the same period last year [2][7]. Financial Performance for Nine Months Ended September 30, 2025 - Revenues for the nine-month period increased by 12.4% to $460.6 million, compared to $409.9 million in the same period of 2024 [11]. - Gross profit for the nine months rose by 10.4% to $127.2 million, with a gross margin of 27.6% [8][11]. - Operating income for the nine months increased by 8.9% to $48.5 million, while non-GAAP operating income rose by 4.0% to $57.0 million [8][11]. - Net income attributable to shareholders for the nine months increased by 11.4% to $29.3 million, or $0.60 per diluted share, compared to $26.3 million, or $0.53 per diluted share, in the same period last year [11]. Cash Flow and Financial Position - Cash flow from operating activities for the nine-month period was $40.6 million, down from $49.1 million in the same period last year [11]. - As of September 30, 2025, the company had cash, cash equivalents, and short-term bank deposits totaling $103.3 million [11]. Dividend Declaration - The board of directors declared a quarterly cash dividend of 15.1 cents per share, totaling approximately $7.4 million, reflecting about 75% of distributable profits for the period [10][12]. Strategic Outlook - The company revised its full-year 2025 revenue guidance from $600 million to a range of $610 million to $620 million, indicating sustained operational momentum and a favorable outlook for Q4 2025 [11].

Core Insights - Gary Gordon has extensive experience in the financial sector, particularly as a stock analyst in housing, mortgage, and consumer finance industries [1] - He has held significant roles at PaineWebber and UBS, and has transitioned into academia and community service after retirement [1] Company and Industry Summary - Gordon's career included positions as a U.S. investment strategist and portfolio manager, indicating a strong background in investment analysis and strategy [1] - His current role as an adjunct professor and his involvement in financial literacy seminars highlight a commitment to education and community engagement [1] - Gordon's board memberships with Hudson Link and the Baron de Hirsch Fund suggest a focus on social impact, particularly in education for incarcerated individuals [1]

Core Insights - MGIC Investment Corporation reported a net income of $191.1 million or $0.83 per diluted share for the third quarter of 2025, reflecting a slight decrease from $192.5 million in the previous quarter [1][2] - The adjusted net operating income for the same period was $190.8 million, also at $0.83 per diluted share, indicating a stable performance compared to $194.0 million in Q2 2025 [1][2] - The company emphasized the strength of its business model and effective risk management strategies, aiming for sustainable long-term value for shareholders [2] Financial Metrics - Net income for Q3 2025 was $191.1 million, down from $192.5 million in Q2 2025 [2] - Adjusted net operating income was $190.8 million, compared to $194.0 million in Q2 2025 [2] - New insurance written (NIW) increased to $16.5 billion from $16.4 billion in the previous quarter [2] - Net premiums earned were $241.8 million, a decrease from $244.3 million in Q2 2025 [2] - The annual persistency rate improved to 85.0% from 84.7% in Q2 2025 [2] Loss and Delinquency Statistics - Losses incurred, net, were reported at $10.9 million, a significant increase from a net gain of $2.8 million in Q2 2025 [2] - The primary delinquency inventory rose to 25,747 from 24,444 in the previous quarter, with a delinquency rate of 2.32% compared to 2.21% [2][20] - The loss ratio for the quarter was 4.5%, up from a negative 1.2% in Q2 2025 [2] Capital and Liquidity - As of September 30, 2025, the PMIERs available were $5.9 billion, an increase from $5.7 billion in June 2025 [2] - The company repurchased 7.0 million shares for $187.9 million and declared a dividend of $0.15 per common share [14] - The tangible book value per share increased to $23.58 from $22.99 in the previous quarter [2] Insurance Portfolio - The total primary insurance in force reached $300.8 billion, up from $297.0 billion in Q2 2025 [2][18] - The average loan size of insurance in force was $270.6 thousand, compared to $268.2 thousand in the previous quarter [18] - The company reported a total of 1,111,855 loans in force, an increase from 1,107,526 in Q2 2025 [18]

Core Insights - MGIC becomes the first mortgage insurer to manage its own updates and deliver faster access to solutions through the ICE Mortgage Technology Encompass Partner Connect platform [1][2]. Group 1: Company Developments - MGIC now directly manages new features and updates for its mortgage insurance products within the ICE EPC platform, allowing for quicker enhancements and timely access to solutions for customers [2]. - The new functionality reflects MGIC's commitment to improving customer experience and adapting to the evolving needs of the lending environment [3]. Group 2: Strategic Goals - The company aims to continually evolve its offerings to support future homebuyers with low-down-payment financing solutions [3]. Group 3: Company Overview - MGIC is the principal subsidiary of MGIC Investment Corporation, serving lenders across the United States and facilitating affordable low-down-payment mortgages through private mortgage insurance [4].

Core Insights - MGIC Investment Corporation has elected Martin P. Klein and Daniela A. O'Leary-Gill to its Board of Directors, enhancing its governance and strategic oversight [1][2][3] Group 1: Board Appointments - Martin P. Klein will serve on the Risk Management and Securities Investment Committees, while Daniela A. O'Leary-Gill will be part of the Audit and Business Transformation and Technology Committees [1] - Klein has extensive experience, having served as Executive Vice President and CFO at Athene Holdings and Genworth Financial, and currently holds a position at Apollo Global Management [2] - O'Leary-Gill has over 25 years of leadership experience in finance and strategy, previously serving as COO for BMO U.S. and on the Board of Discover Financial Services [3] Group 2: Company Overview - MGIC Investment Corporation, through its subsidiary MGIC, provides private mortgage insurance to facilitate affordable low-down-payment mortgages, aiding families in achieving homeownership [3]