Accessibility StatementSkip Navigation MILWAUKEE, Sept. 30, 2025 /PRNewswire/ --Â MGIC Investment Corporation (NYSE: MTG) has announced plans to release its third quarter 2025 financial results after the market closes on Wednesday, October 29, 2025. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Thursday, October 30, 2025, to discuss the Company's results for the quarter ended September 30, 2025. Individuals interested in joining by telephone should register for the call "here" ...

Core Viewpoint - Magic Software (MGIC) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Magic Software's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.29 per share, reflecting a +26.1% change from the previous year, with the Zacks Consensus Estimate increasing by 11.54% over the last 30 days [6]. - For the full year, the earnings estimate stands at $1.09 per share, indicating a +17.2% change from the year-ago figure, with a 10.1% increase in the consensus estimate during the same period [7][8]. Zacks Rank and Performance - Magic Software has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential outperformance compared to the S&P 500 [9]. - Historically, Zacks 1 (Strong Buy) and 2 (Buy) ranked stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][9]. Stock Performance - The stock has gained 6.4% over the past four weeks, driven by solid estimate revisions, suggesting that earnings growth prospects may lead to further stock price increases [10].

Group 1 - Magic Software (NASDAQ: MGIC) reported a decent quarter with North American revenues showing improvement, even after accounting for acquisition effects [2] - Profit growth for Magic Software was somewhat hindered by negative mix effects, but there are indications of a potential pickup in performance [2] - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of approximately 4%, and has seen success over the past five years by engaging in international markets [1] Group 2 - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas in developed markets, targeting downside protection and non-correlated returns in the current economic climate [3]

Core Insights - Magic Software has experienced a significant rally since November 2024, with momentum strengthening in recent months [1] - The stock has entered Phase 10 on the weekly chart, indicating a critical point in its price movement [7] Group 1: Cakra Formation and Breakout - According to the Adhishthana Principles, stocks form a structure called the Adhishthana Cakra between Phases 4 and 8, resembling a channel or arc pattern [4] - A breakout from this structure in Phase 9 is a highly bullish signal, marking the beginning of the Adhishthana Himalayan Formation, characterized by a sharp ascent, peak, and final descent [4] - Magic Software completed its Cakra formation in August 2021 and broke out in Phase 9, resulting in a surge of approximately 93% [5] Group 2: Current Phase and Future Outlook - As of August 11, Magic Software officially entered Phase 10, where the peak of the Himalayan Formation is expected to begin [7] - The rally remains intact with strong momentum, and the December-January period is crucial for observing potential peak formation [8] - If a peak does not form during this window, it may be delayed until Phase 11 [8] Group 3: Investor Sentiment - The bullish bias for Magic Software persists as it continues its ascent in the Himalayan Formation [9] - Existing investors are advised to hold their positions but exercise caution as the stock approaches the December–January window, where a peak could emerge [9] - Strategic hedging during this period may help protect gains [9]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached a record high of $151.6 million, representing an increase of approximately 11.3% year-over-year and a sequential growth of 2.8% [5] - Non-GAAP net income attributable to shareholders increased by 8.7% to $12.7 million, or $0.26 per fully diluted share, compared to $11.7 million, or $0.24 per fully diluted share in the same period last year [13] - Non-GAAP gross margin for Q2 2025 was 28.7%, down from 29.4% in Q2 2024, but improved sequentially from 28.5% [11] Business Line Data and Key Metrics Changes - Revenue from Israeli operations totaled $68.7 million, an increase of 18.8% compared to $57.8 million in the same period last year, accounting for 47% of overall quarterly revenue [10] - North American operations saw revenue increase by approximately 6.5% year-over-year, reaching $62.2 million [10] Market Data and Key Metrics Changes - In the U.S., revenue growth was approximately 9% year-over-year, driven by agreements executed in late 2024 and early 2025 [6] - The company is witnessing signs of improvement in the U.S. market, reinforcing positive momentum for continued growth [6] Company Strategy and Development Direction - The company is focused on leveraging its AI low code, no code cloud-based platform to meet the accelerating demand for automation and innovative software solutions [7] - A memorandum of understanding has been signed to negotiate a merger with Matrix, which is expected to create a more diversified and resilient global IT service provider [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive continued growth through sales of their product suite and high-value services, with a strong pipeline supporting sustained growth [16] - The company revised its full-year 2025 revenue guidance to a range of $600 million to $610 million, reflecting an anticipated annual growth rate of approximately 8.6% to 10.4% [17] Other Important Information - Cash flow from operating activities for the first half of 2025 was $21.2 million, down from $41.4 million in the same period of 2024, primarily due to increased investment in working capital [15] - The company declared a semiannual cash dividend of $0.296 per share, totaling approximately $14.5 million, reflecting about 75% of distributable profit for 2025 [14] Q&A Session Summary Question: Can you give us any color on customer behavior in the U.S.? - Management noted increased demand from major clients and signs of recovery in IT spending, contrasting with the previous year [20] Question: Can you talk about some of the drivers that are impacting margins? - Management indicated that margins were impacted by the timing of software license renewals and the revenue mix, with a significant increase in revenues from professional services [21][22] Question: How would you describe the progress of customers transitioning to cloud solutions? - Management observed more adoption of cloud solutions, with new customers jumping directly into the cloud and legacy customers starting to adopt cloud offerings [24] Question: Can you comment on the pipeline and types of deals being seen? - Management highlighted that cloud and AI projects are significant drivers, with hundreds of projects underway and a higher conversion rate than the industry standard [28]

Core Insights - Magic Software Enterprises Ltd. reported strong financial results for Q2 and H1 2025, showcasing consistent growth across key metrics, including revenues, gross profit, and net income [1][13][16]. Financial Highlights for Q2 2025 - Revenues increased by 11.3% to $151.6 million compared to $136.3 million in Q2 2024 [2][8]. - Gross profit rose by 9.1% to $42.4 million, with a gross margin of 27.9%, slightly down from 28.5% in the previous year [2][8]. - Operating income grew by 4.0% to $15.6 million, with an operating margin of 10.3%, down from 11.0% [2][8]. - Net income attributable to shareholders increased by 9.8% to $9.9 million, translating to a diluted EPS of $0.20, up from $0.18 [2][8]. Financial Highlights for H1 2025 - Revenues for the first half of 2025 increased by 12.0% to $299.0 million compared to $267.0 million in H1 2024 [6][7]. - Gross profit for H1 2025 was $83.0 million, with a gross margin of 27.8%, down from 28.3% in the previous year [6][7]. - Operating income for H1 2025 rose by 6.5% to $31.4 million, with an operating margin of 10.5%, slightly down from 11.0% [6][16]. - Net income attributable to shareholders for H1 2025 increased by 8.8% to $19.4 million, or $0.40 per diluted share, compared to $0.36 in H1 2024 [6][16]. Dividend Declaration - The board declared a semi-annual cash dividend of $0.296 per share, totaling approximately $14.5 million, reflecting about 75% of distributable profits for H1 2025 [9][10]. Strategic Outlook - The company anticipates a revenue run-rate exceeding $600 million, driven by strong demand for digital, AI, and cloud transformation solutions, particularly in the defense sector [13][14]. - Magic Software revised its full-year 2025 revenue guidance to a range of $600 million to $610 million, indicating an expected annual growth rate of approximately 8.6% to 10.4% compared to the previous fiscal year [16].

Core Viewpoint - MGIC Investment Corporation received upgrades from Moody's Ratings, reflecting its strong performance and financial stability [1][2]. Group 1: Ratings Upgrade - Moody's upgraded MGIC's senior unsecured debt rating to Baa2 from Baa3 [1]. - The insurance financial strength rating of MGIC's principal operating subsidiary, Mortgage Guaranty Insurance Corporation, was upgraded to A2 from A3 [1]. - The outlook for both ratings is stable [1]. Group 2: Rationale for Upgrade - The upgrades were based on MGIC's consistent performance, good net capital generation, and robust profitability and capital adequacy [2]. Group 3: Company Positioning - The CEO of MGIC expressed satisfaction with the upgrades, highlighting the company's market leadership and disciplined approach [3]. - MGIC aims to continue executing its business strategies and creating long-term value for stakeholders [3].

Core Viewpoint - MGIC Investment Corporation (MTG) reported strong second-quarter 2025 results, with operating net income per share of 82 cents, exceeding expectations and showing a year-over-year increase of 6.5% [1][7]. Financial Performance - Total operating revenues for MGIC Investment were $306 million, remaining flat year over year, and slightly missing the consensus estimate by 0.4% [2]. - The book value per share increased by 12.9% from the end of 2024 to $22.11 as of June 30, 2025 [5]. - Shareholder equity stood at $5.2 billion, a decrease of 0.3% from the end of 2024 [5]. - MGIC paid $400 million in dividends to the holding company and declared a dividend of 15 cents per share to be paid on August 21, 2025 [8]. Operational Metrics - Insurance in force rose by 1.9% year over year to $297 billion, falling short of the Zacks Consensus Estimate of $299 billion [3]. - Primary delinquency increased by 4.6% year over year to 24,444 loans [3][7]. - New insurance written reached $16.4 billion, marking a significant year-over-year increase of 21.5% [4][7]. - The loss ratio for the quarter was negative 1.2%, an improvement from negative 7.5% in the same quarter of the previous year [4]. Capital Management - MGIC repurchased 7.1 million shares for $180.7 million and has an additional share repurchase program authorized for up to $750 million [6]. - As of July 25, 2025, MGIC repurchased an additional 2.6 million shares for $68 million [6]. Industry Comparison - Other insurers like Prudential Financial, Everest Group, and Chubb Limited also reported positive results in Q2 2025, with adjusted operating incomes and total revenues beating consensus estimates [10][11][12].

Group 1 - MGIC Investment Corp (MTG) shares have gained 2% over the past year, indicating modest performance [1] - The stock has experienced a pullback in the last month due to increasing concerns about a slowing market [1] Group 2 - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Company Announcement - MGIC Investment Corporation plans to release its second quarter 2025 financial results after the market closes on July 30, 2025 [1] - A conference call/webcast is scheduled for 9:30 a.m. Eastern Time on July 31, 2025, to discuss the results for the quarter ended June 30, 2025 [1] Participation Details - Individuals interested in joining the conference call should register to receive the dial-in number and unique PIN [2] - It is recommended to join the call at least 10 minutes before it begins, and the call will also be available via webcast on the Company's Investor website [2] Company Overview - Mortgage Guaranty Insurance Corporation (MGIC) is the principal subsidiary of MGIC Investment Corporation, serving lenders across the United States [3] - MGIC helps families achieve homeownership by providing affordable low-down-payment mortgages through private mortgage insurance [3]