Magic Software (MGIC) Q2 Earnings and Revenues Beat Estimates

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]