Equities Analysts Set Expectations for MGIC Q3 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 increased their Q3 2025 earnings per share (EPS) estimates for Magic Software Enterprises in a research report issued on Wednesday, August 13th. William Blair analyst M. Nolan now expects that the software maker will post earnings per share of $0.29 for the quarter, up from their prior forecast 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.

Several other research analysts have also recently commented on the stock. Zacks Research raised shares of Magic Software Enterprises from a "hold" rating to a "strong-buy" rating in a report on Friday, August 15th. Barclays lifted their price target on shares of Magic Software Enterprises from $16.00 to $18.00 and gave the company an "overweight" rating in a report on Wednesday, August 13th. Finally, Wall Street Zen lowered shares of Magic Software Enterprises from a "buy" rating to a "hold" rating in a report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Magic Software Enterprises currently has a consensus rating of "Buy" and a consensus price target of $18.00.

Magic Software Enterprises Stock Performance

Shares of NASDAQ:MGIC traded down $0.43 during trading on Friday, reaching $19.85. 15,426 shares of the stock were exchanged, compared to its average volume of 64,434. Magic Software Enterprises has a 12 month low of $10.24 and a 12 month high of $22.00. The firm has a market cap of $974.64 million, a PE ratio of 25.45 and a beta of 1.04. The stock has a 50-day moving average price of $19.68 and a 200-day moving average price of $15.83. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.14.

Magic Software Enterprises (NASDAQ:MGIC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 13th. The software maker reported $0.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. The firm had revenue of $151.60 million during the quarter, compared to the consensus estimate of $143.06 million. Magic Software Enterprises had a return on equity of 15.85% and a net margin of 6.58%. Magic Software Enterprises has set its FY 2025 guidance at EPS.

Institutional Trading of Magic Software Enterprises

Several large investors have recently modified their holdings of the stock. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Magic Software Enterprises during the first quarter worth approximately $35,911,000. Y.D. More Investments Ltd boosted its position in shares of Magic Software Enterprises by 22.1% during the first quarter. Y.D. More Investments Ltd now owns 174,366 shares of the software maker's stock valued at $2,240,000 after buying an additional 31,527 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of Magic Software Enterprises by 21.1% during the fourth quarter. JPMorgan Chase & Co. now owns 112,782 shares of the software maker's stock valued at $1,357,000 after buying an additional 19,616 shares during the last quarter. Menora Mivtachim Holdings LTD. purchased a new position in shares of Magic Software Enterprises during the first quarter valued at approximately $273,000. Finally, Millennium Management LLC boosted its position in shares of Magic Software Enterprises by 66.7% during the fourth quarter. Millennium Management LLC now owns 28,599 shares of the software maker's stock valued at $344,000 after buying an additional 11,442 shares during the last quarter. Institutional investors and hedge funds own 24.70% of the company's stock.

Magic Software Enterprises Cuts Dividend

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