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Magic Software Enterprises Ltd (MGIC)
NASDAQ:MGIC
Earnings Data
Report Date
May 07, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.26Last Year’s EPS
0.23Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 11, 2025
|% Change Since: 2.49%
|Next Earnings Date:May 07, 2025
Earnings Call Sentiment|Positive
The earnings call reflects a generally positive outlook due to significant revenue growth, a strategic merger, and strong performance in cloud services. However, there were some areas of concern, such as stagnant organic growth in North America and a decrease in net income. Despite these, the merger with Matrix I.T. is expected to create substantial value and enhance future growth prospects.Company Guidance
During the Magic Software Enterprises 2024 Fourth Quarter and Full Year Financial Results Conference Call, significant guidance was provided, including the announcement of a merger with Matrix I.T., projected to create a combined market capitalization of $2.3 billion. The merger anticipates generating over $2 billion in annual revenues, with a gross profit of $382 million and an operating income of $183 million, reflecting a 9% operating margin. The EBITDA is expected to reach $217 million, yielding a margin of over 10%, while net income attributable to non-controlling interest is projected at $110.6 million with a 5.4% net margin. For 2025, Magic forecasts revenues between $593 million and $603 million, indicating a growth rate of 7.3% to 9.1%. The company also highlighted a 45% year-over-year increase in cloud services revenue and maintained a strong cash position with $112.8 million in cash and cash equivalents. The merger strategy emphasizes leveraging cross-selling opportunities and enhancing geographic reach, particularly in the US and Israeli markets.Revenue Growth in Q4 2024
Revenue in the fourth quarter of 2024 increased to $142.6 million, up approximately 13.6% from the fourth quarter of 2023, driven by strong demand for cloud, DevOps, and AI services.
Successful Merger Announcement
Magic Software announced a merger with Matrix I.T., which will create a combined entity expected to generate over $2 billion in annual revenues, providing a 13% premium on Magic's share price prior to the announcement.
Cloud Services Growth
Revenues from cloud services increased by 45% year-over-year in 2024, with over 400 satisfied customers across various industries.
Debt Reduction
Total financial debt decreased from $82 million to $59 million by the end of 2024.
Cash Flow Improvement
Cash flow from operating activities for the year ended in 2024 was $74.7 million, compared to $69 million in the same period last year.
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MGIC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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MGIC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 11, 2025 | $12.85 | $13.39 | +4.20% |
| Nov 18, 2024 | $11.20 | $10.79 | -3.66% |
| Aug 14, 2024 | $10.13 | $10.02 | -1.09% |
| May 16, 2024 | $12.36 | $11.24 | -9.06% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Magic Software Enterprises Ltd (MGIC) report earnings?
Magic Software Enterprises Ltd (MGIC) is schdueled to report earning on May 07, 2025, TBA Not Confirmed.
What is Magic Software Enterprises Ltd (MGIC) earnings time?
Magic Software Enterprises Ltd (MGIC) earnings time is at May 07, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MGIC EPS forecast?
MGIC EPS forecast for the fiscal quarter 2025 (Q1) is 0.26.
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