Core Viewpoint - MGIC Investment Corporation (MTG) has outperformed the industry, sector, and S&P 500 year-to-date, with a share price increase of 35.3% compared to the industry's 25% growth [1][2]. Company Performance - The company's market capitalization stands at $6.61 billion, with an average trading volume of 0.1 million shares over the last three months. The current stock price is $26.11, slightly below its 52-week high of $26.56 [1]. - MTG has shown solid insurance in force, a decline in loss and claims payments, lower delinquency rates, and better housing market fundamentals, contributing to its stock rally [3]. - The company is trading above its 50-day and 200-day simple moving averages of $25.21 and $22.63, indicating strong upward momentum [4]. Earnings and Growth Projections - MTG has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 16.25% [5]. - The Zacks Consensus Estimate for MTG's 2024 earnings per share indicates an 11% year-over-year increase, with revenues projected at $1.22 billion, reflecting a 4.5% improvement [6]. - For 2025, the revenue consensus estimate suggests a 3.5% increase from the 2024 estimates [7]. Financial Metrics - The return on invested capital (ROIC) has been increasing, currently at 11.4%, significantly higher than the industry average of 2.5%, indicating efficient fund utilization [8]. - The company is improving its capital position through capital contributions, reinsurance transactions, and cash management, with a solid balance sheet supported by declining claim filings [11]. Capital Management - As of October 31, 2024, MTG has $578.6 million remaining under a $750 million share repurchase program, reflecting strong mortgage credit performance [12]. - The shares are currently undervalued, trading at a price-to-book multiple of 1.28, compared to the industry average of 2.43 [13].

Financial Data and Key Metrics Changes - Revenue in Q3 2024 increased to $143 million, up approximately 10.4% from Q3 2023 [5] - Non-GAAP operating income for Q3 2024 increased 7.2% to $18.5 million compared to $17.2 million in the same period last year [20] - Non-GAAP net income for Q3 increased by 6.9% to $11.1 million or $0.23 per fully diluted share compared to $10.4 million or $0.21 per fully diluted share in the same period last year [22] - Gross margin for Q3 2024 amounted to 28.7% of revenues, down from 29.4% in Q3 2023 [18] Business Line Data and Key Metrics Changes - Revenues from Israeli operations amounted to $64.7 million, up by 18.1% compared to $54.8 million reported in the same period last year [16] - Revenues in North America amounted to $59.3 million, approximately $1.6 million or 2.7% higher compared to Q3 2023 [16] - The revenue mix for the first nine months of 2024 was approximately 19% related to software solutions and 81% related to professional services [19] Market Data and Key Metrics Changes - North America delivered sequential mid-single-digit growth of 1.5% with stable client sentiment [6] - Israeli market experienced sequential double-digit growth of 12%, driven by strong demand for cloud, DevOps, and AI services [6] Company Strategy and Development Direction - The company aims to leverage digital technologies and cloud-based platforms to create strong demand for innovative software solutions and services [12] - The focus remains on helping businesses with cloud migration strategies and ensuring high standards of performance, scalability, security, and reliability [13] Management Comments on Operating Environment and Future Outlook - Management noted that while the U.S. market remains stagnant, there are positive signs for growth in Q4 2024 [31][35] - The company is raising the lower end of its 2024 annual revenue guidance, anticipating full year 2024 revenue to be in the range of $544 million to $550 million [24][25] Other Important Information - Cash and cash equivalents as of September 30, 2024, amounted to approximately $99.7 million, down from $106.7 million as of December 31, 2023 [23] - Total financial debt as of September 30, 2024, amounted to approximately $65.8 million, down from $81.2 million as of December 31, 2023 [23] Q&A Session Summary Question: Demand in end markets and sales cycle - Management indicated that the U.S. operations are stagnant with a small increase, but there are good signs for Q4 [31] Question: Performance of U.S.-based blue-chip customers - Management noted that many customers cut projects due to rising interest rates, but stability has returned with signs of hiring again [42]

Core Viewpoint - Magic Software (MGIC) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, but showing an increase from $0.21 per share a year ago, indicating a -4.17% earnings surprise [1] - The company posted revenues of $142.97 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.13% and up from $129.48 million year-over-year [2] Financial Performance - Over the last four quarters, Magic Software has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $140.6 million, and for the current fiscal year, it is $0.95 on revenues of $544.8 million [7] Stock Performance - Magic Software shares have increased approximately 17.9% since the beginning of the year, compared to the S&P 500's gain of 23.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Computer - Software industry is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

OR YEHUDA, Israel, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) (“the Company”), a global provider of IT consulting services and end-to-end integration and application development platforms solutions, announced today its financial results for the third quarter and first nine months period ended September 30, 2024. Summary Results for the Third Quarter 2024 (USD in millions, except per share data)         GAAP  Non-GAAP  Q3 2024Q3 2023% Change Q3 2024Q3 2023% Chan ...

MGIC Investment Corporation (MTG) reported third-quarter 2024 operating net income per share of 77 cents, which beat the Zacks Consensus Estimate by 15%. Moreover, the bottom line increased 20.3% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The quarterly results reflected higher new insurance written and improved net investment income, partially offset by lower insurance in force.MGIC Investment recorded total operating revenues of $306 million, which increased 3% ...

Third Quarter 2024 Net Income of $200.0 million or $0.77 per Diluted ShareThird Quarter 2024 Adjusted Net Operating Income (Non-GAAP) of $200.7 million or $0.77 per Diluted ShareMILWAUKEE, Nov. 4, 2024 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the third quarter of 2024.Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "We are very pleased with our third quarter financial results, generating net income of $200 mi ...

MILWAUKEE, Oct. 24, 2024 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced that its Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on November 21, 2024, to shareholders of record as of November 7, 2024. About MGICMortgage Guaranty Insurance Corporation ("MGIC") (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, helping families achieve homeownership sooner by making affordable low-down-payme ...

MILWAUKEE, Aug. 21, 2024 /PRNewswire/ -- Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation (NYSE: MTG), comments on the updates by the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to the Private Mortgage Insurer Eligibility Requirements (PMIERs) Available Assets Standards. "We are proud of the critical role private mortgage insurance (MI) plays in the housing finance system. PMIERs operational and risk-based capital requirements p ...

Financial Data and Key Metrics Changes - Revenues in Q2 2024 decreased to $136.3 million, down approximately 1% from Q2 2023. On a constant currency basis, revenues would have increased by approximately 0.4% to $138.1 million [3] - Non-GAAP net income for Q2 decreased by 13.6% to $11.7 million or $0.24 per fully diluted share compared to $13.5 million or $0.28 per fully diluted share in the same period last year [14] - Non-GAAP operating margin for Q2 held strong at approximately 13.4%, same as in Q2 2023 [7][12] Business Line Data and Key Metrics Changes - Revenues from North America amounted to $58 million, approximately $11.2 million or 16.2% lower compared to Q2 2023, but $5.8 million or 11.1% higher compared to Q1 2024 [10] - Revenues from Israeli operations amounted to $58.2 million, up by 12.6% compared to $51.7 million in the same period last year [10] - The breakdown of revenue mix for the first half of 2024 was approximately 19% related to software solutions with a gross margin of approximately 65%, and 81% related to professional services with a gross margin of approximately 20% [11] Market Data and Key Metrics Changes - The U.S. market experienced a substantial and unexpected decline in demand for professional services from several important blue-chip customers, leading to a suspension of significant parts of their projects [5] - Client sentiment in the U.S. has remained stable with no significant changes, and there are early signs of improvement in demand [5][16] Company Strategy and Development Direction - The company aims to leverage digital technologies and cloud-based platforms to create strong demand for its software solutions and services [7] - The acquisition of Theoris, Inc. is seen as a strategic move to enhance operations in North America, focusing on IT and engineering consulting services [4][22] - The company is committed to helping businesses with cloud migration strategies and avoiding pitfalls associated with moving to the cloud [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for growth in the U.S. economy, although full-year guidance does not currently account for macroeconomic improvements [5] - The company is optimistic about the demand in Israel and Europe, while the U.S. market remains stable with some signs of improvement [16] - Management believes that maintaining profitability will keep the balance sheet strong and enable future investments for revenue growth [7] Other Important Information - The company reiterated its 2024 full-year revenue guidance in the range of $540 million to $550 million [15] - Cash and cash equivalents as of June 30, 2024, amounted to approximately $108.4 million, compared to $106.7 million as of December 31, 2023 [15] Q&A Session Summary Question: Insights on customer demand evolution and North American optimism - Management noted stable demand in Israel and Europe, with early signs of improvement in the U.S. market, although sales cycles remain longer than before [16] Question: Operating margin expectations in a normalized environment - Management indicated that a stable environment could achieve an operating margin of around 14%, but current conditions are affecting this outlook [17][18] Question: Factors affecting margins this quarter - The flat operating margin was attributed to fewer billable days in the Israeli market and a revenue mix that favored software sales, which helped maintain margins despite challenges in professional services [21]

Core Insights - Magic Software (MGIC) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 9.09% [1] - The company achieved revenues of $136.25 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.14%, although this is a decrease from $137.58 million in the same quarter last year [2] - Magic Software has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $137.3 million, and for the current fiscal year, it is $0.95 on revenues of $543.9 million [7] - The estimate revisions trend for Magic Software is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computer - Software industry, to which Magic Software belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Magic Software's stock performance [5]