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 ...

Group 1 - MGIC Investment Corporation announced a quarterly cash dividend of $0.13 per share, payable on November 21, 2024, to shareholders of record as of November 7, 2024 [1] - MGIC, the principal subsidiary of MGIC Investment Corporation, provides private mortgage insurance to lenders across the United States, facilitating affordable low-down-payment mortgages for families [2] - The company intends to continue releasing important information through its corporate website and encourages investors to enroll for automatic email alerts regarding new postings [2]

Core Viewpoint - The updates to the Private Mortgage Insurer Eligibility Requirements (PMIERs) by Fannie Mae and Freddie Mac are significant for the private mortgage insurance industry, impacting the Available Assets standards and the overall risk management framework [1][3]. Group 1: Company Insights - Mortgage Guaranty Insurance Corporation (MGIC) emphasizes the importance of private mortgage insurance in the housing finance system, highlighting its role in supporting low down payment borrowers while mitigating mortgage credit risk for GSEs and taxpayers [2]. - Tim Mattke, CEO of MGIC, expresses pride in the company's strong capital position and the collaboration with GSEs to support prudent changes to PMIERs [2]. Group 2: Regulatory Changes - The recent updates to PMIERs include changes to exclusions, concentration limits, and haircuts on investments qualifying as Available Assets, which will be phased in over 24 months, with full implementation by September 30, 2026 [3]. - If the changes had been effective as of June 30, 2024, MGIC's Available Assets of $5.8 billion would have decreased by approximately 1%, equating to a reduction of $50 million, while the PMIERs excess would stand at $2.3 billion [3].

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]

OR YEHUDA, Israel, Aug. 14, 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 second quarter and first half ended June 30, 2024. Summary Results for the Second Quarter 2024 (USD in millions, except per share data) | --- | --- | --- | --- | --- | --- | --- | |------------------|------------------|- ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) Magic Software's Q1 2024 saw revenue decline, but improved margins and strong operating cash flow, with full-year guidance reiterated [Summary of Financial Results](index=1&type=section&id=Summary%20of%20Financial%20Results) Magic Software experienced an **8.2% revenue decline** in Q1 2024, with GAAP net income down **13.0%**, yet gross and operating margins improved Q1 2024 Financial Results Summary (USD in millions, except per share data) | Metric | Q1 2024 GAAP | Q1 2023 GAAP | % Change | Q1 2024 Non-GAAP | Q1 2023 Non-GAAP | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $130.7 | $142.4 | (8.2)% | $130.7 | $142.4 | (8.2)% | | Gross profit | $36.7 | $38.9 | (5.6)% | $38.3 | $40.1 | (4.5)% | | Gross margin | 28.1% | 27.3% | +80 bps | 29.3% | 28.2% | +110 bps | | Operating income | $14.4 | $15.3 | (6.0)% | $18.1 | $18.5 | (1.7)% | | Operating margin | 11.0% | 10.8% | +20 bps | 13.9% | 13.0% | +90 bps | | Net income (*) | $8.8 | $10.1 | (13.0)% | $11.3 | $12.6 | (10.4)% | | Diluted EPS | $0.18 | $0.21 | (14.3)% | $0.23 | $0.26 | (11.5)% | [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q1 2024 revenues declined **8.2%** due to reduced U.S. customer demand, while operating cash flow significantly increased and the balance sheet remained strong - Revenues for Q1 2024 decreased by **8.2%** to **$130.7 million**, impacted by a **$20.4 million** decline in demand from key U.S. blue-chip customers[2](index=2&type=chunk) - GAAP net income attributable to shareholders fell **13.0%** to **$8.8 million**, primarily due to lower operating profit and higher interest expenses[4](index=4&type=chunk) - Cash flow from operating activities significantly increased to **$27.7 million** in Q1 2024, compared to **$18.8 million** in the same period last year[4](index=4&type=chunk) - As of March 31, 2024, the company held **$125.9 million** in cash, cash equivalents, and bank deposits, with total financial debt at **$78.4 million**[5](index=5&type=chunk) [2024 Full Year Guidance](index=2&type=section&id=2024%20Full%20Year%20Guidance) Magic Software reiterates its 2024 full-year revenue guidance, projecting revenues between **$540 million** and **$550 million** - The company reaffirms its 2024 annual revenue guidance to be between **$540 million** and **$550 million**[5](index=5&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) The company declared a semi-annual cash dividend of **20.4 cents per share**, totaling **$10.0 million**, representing **70%** of H2 2023 distributable profits [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) A semi-annual cash dividend of **20.4 cents per share**, totaling **$10.0 million**, was declared for H2 2023, payable July 13, 2024 - A semi-annual cash dividend of **20.4 cents per share** was declared, amounting to a total of approximately **$10.0 million**[6](index=6&type=chunk) - The dividend is payable on **July 13, 2024**, to shareholders of record as of **June 27, 2024**[6](index=6&type=chunk) - This distribution reflects approximately **70%** of the company's distributable profits for the second half of 2023[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Guy Bernstein acknowledged U.S. headwinds but affirmed continued customer engagement and focus on long-term profitability through cutting-edge capabilities [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO acknowledged H2 2023 U.S. headwinds but affirmed strong customer engagement and commitment to long-term profitability through innovation - The CEO acknowledged a slowdown in H2 2023 due to headwinds with certain U.S. customers[7](index=7&type=chunk) - He emphasized that most customers continue to view Magic Software as a preferred partner for digital transformation[7](index=7&type=chunk) - The company is focused on developing cutting-edge capabilities to ensure long-term profitability and shareholder value[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows for Q1 2024, detailing the company's financial position and performance [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 revenues decreased to **$130.7 million**, with net income attributable to shareholders at **$8.8 million** and diluted EPS of **$0.18** Q1 2024 vs Q1 2023 Income Statement (USD in thousands) | Line Item | Q1 2024 (Unaudited) | Q1 2023 | | :--- | :--- | :--- | | Revenues | $130,720 | $142,440 | | Gross profit | $36,699 | $38,885 | | Operating income | $14,426 | $15,347 | | Financial expenses, net | ($1,758) | ($564) | | Income before taxes | $12,782 | $14,648 | | Net income | $10,053 | $11,835 | | Net income attributable to Magic's shareholders | $8,797 | $10,108 | | Diluted EPS | $0.18 | $0.21 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **$536.5 million**, driven by higher cash, with total equity reaching **$296.5 million** Balance Sheet Summary (USD in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,803 | $105,943 | | Total current assets | $273,746 | $256,625 | | Total assets | $536,517 | $522,406 | | **Liabilities & Equity** | | | | Total current liabilities | $161,583 | $141,699 | | Total long term liabilities | $78,449 | $89,763 | | Total equity | $296,485 | $290,944 | | Total liabilities and equity | $536,517 | $522,406 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 operating cash flow significantly increased to **$27.7 million**, leading to a **$19.9 million** rise in cash and cash equivalents Cash Flow Summary for Q1 (USD in thousands) | Cash Flow Activity | Q1 2024 (Unaudited) | Q1 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash provided by operating activities | $27,677 | $18,753 | | Net cash used in investing activities | ($1,265) | ($11,239) | | Net cash (used in) provided by financing activities | ($5,428) | $13,520 | | Increase in cash and cash equivalents | $19,860 | $19,444 | | Cash and cash equivalents at end of period | $125,803 | $102,506 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures, providing a clearer view of Magic Software's underlying business performance [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures are used to provide a clearer view of ongoing business performance by excluding specific non-recurring or non-cash items - The company believes non-GAAP measures provide useful information to management and investors regarding financial and business trends[9](index=9&type=chunk) - Key items excluded from non-GAAP calculations include: - Amortization of purchased intangible assets - Cost of share-based payment - Costs related to acquisitions - Change in valuation of contingent consideration - Related tax and non-controlling interests' effects[11](index=11&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Detailed reconciliation of Q1 2024 GAAP to non-GAAP results, adjusting for items like amortization and share-based payments, yielding a non-GAAP diluted EPS of **$0.23** Reconciliation of GAAP to Non-GAAP Operating Income for Q1 2024 (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP operating income** | **$14,426** | | Gross profit adjustments | $1,610 | | Amortization of other intangible assets | $1,514 | | Increase in valuation of contingent consideration | $306 | | Capitalization of software development | ($748) | | Costs related to acquisitions | $144 | | Cost of share-based payment | $891 | | **Non-GAAP operating income** | **$18,143** | Reconciliation of GAAP to Non-GAAP Net Income for Q1 2024 (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income attributable to Magic's shareholders** | **$8,797** | | Operating income adjustments | $3,717 | | Expenses attributed to non-controlling interests | ($452) | | Increase in valuation of consideration related to acquisitions | $114 | | Deferred taxes on the above items | ($899) | | **Non-GAAP net income attributable to Magic's shareholders** | **$11,277** |