William Blair Issues Positive Outlook for MGIC Earnings

Key Points

• William Blair raised its Q3 2025 earnings per share estimate for Magic Software Enterprises from $0.26 to $0.29, with a full-year consensus of $0.95.
• The company reported Q2 earnings of $0.26 per share, exceeding expectations, alongside revenues of $151.60 million against a forecast of $143.06 million.
• Magic Software Enterprises has announced a semi-annual dividend of $0.296 per share, reflecting a significant dividend yield of 290.0%.

Magic Software Enterprises Ltd. (NASDAQ:MGIC - Free Report) - Equities researchers at William Blair upped their Q3 2025 earnings per share (EPS) estimates for shares of Magic Software Enterprises in a report released on Wednesday, August 13th. William Blair analyst M. Nolan now expects that the software maker will earn $0.29 per share for the quarter, up from their prior estimate of $0.26. The consensus estimate for Magic Software Enterprises' current full-year earnings is $0.95 per share. William Blair also issued estimates for Magic Software Enterprises' Q4 2025 earnings at $0.28 EPS, FY2025 earnings at $1.09 EPS, Q1 2026 earnings at $0.29 EPS, Q2 2026 earnings at $0.30 EPS, Q3 2026 earnings at $0.31 EPS, Q4 2026 earnings at $0.30 EPS and FY2026 earnings at $1.20 EPS.

A number of other equities analysts have also recently issued reports on MGIC. Wall Street Zen cut Magic Software Enterprises from a "buy" rating to a "hold" rating in a report on Saturday. Barclays reiterated an "overweight" rating and set a $18.00 target price (up previously from $16.00) on shares of Magic Software Enterprises in a report on Wednesday.

Magic Software Enterprises Stock Up 1.8%

MGIC stock traded up $0.36 during trading hours on Friday, reaching $20.36. 18,665 shares of the stock were exchanged, compared to its average volume of 49,034. The firm's 50-day moving average is $19.51 and its 200-day moving average is $15.74. The company has a market cap of $999.68 million, a price-to-earnings ratio of 26.10 and a beta of 1.04. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.61 and a quick ratio of 1.61. Magic Software Enterprises has a 12 month low of $10.24 and a 12 month high of $22.00.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last released its earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. The firm had revenue of $151.60 million during the quarter, compared to analysts' expectations of $143.06 million. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%.

Institutional Trading of Magic Software Enterprises

A number of hedge funds and other institutional investors have recently modified their holdings of MGIC. Raymond James Financial Inc. acquired a new stake in shares of Magic Software Enterprises in the second quarter valued at about $33,000. State of Tennessee Department of Treasury acquired a new stake in shares of Magic Software Enterprises in the second quarter valued at about $46,000. Altshuler Shaham Ltd acquired a new stake in shares of Magic Software Enterprises in the fourth quarter valued at about $138,000. Man Group plc acquired a new stake in shares of Magic Software Enterprises in the fourth quarter valued at about $145,000. Finally, Walleye Capital LLC acquired a new stake in shares of Magic Software Enterprises in the first quarter valued at about $161,000. Institutional investors and hedge funds own 24.70% of the company's stock.

Magic Software Enterprises Cuts Dividend

The business also recently announced a semi-annual dividend, which will be paid on Wednesday, October 22nd. Investors of record on Monday, October 6th will be given a $0.296 dividend. The ex-dividend date of this dividend is Monday, October 6th. This represents a dividend yield of 290.0%. Magic Software Enterprises's payout ratio is currently 83.33%.

About Magic Software Enterprises

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.