Ultime notizie per Magic Software (NASDAQ:MGIC) Azioni

Magic Software

Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.

Magic Software Enterprises Ltd. - Ordinary Shares

Magic Software Enterprises Ltd

MGIC INVESTMENT ORD

MGIC Investment Corp

Magic is reiterating 2024 annual revenue guidance of between $540 million and $550 million.

News

Guidance

MGIC

Magic Software Enterprises Reiterated FY24 Revenue Of $540M-$550M Vs $544.42M Est

Earnings

Earnings Beats

Magic Software Q2 2024 Adj. EPS $0.24, Inline, Sales $136.250M Beat $132.690M Estimate

WIIM

Magic Software Enterprises shares are trading lower after the company reported a year-over-year decrease in Q1 financial results.

Magic Software Enterprises Reiterates FY24 Revenue $540M-$550M

Magic Software Enterprises Q1 2024 Adj. EPS $0.23 Down From $0.26 YoY; Revenue $130.7M Down From $142.4M YoY

Barclays analyst Tavy Rosner maintains Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) with a Overweight and raises the price target from $13 to $14.

Price Target

Analyst Ratings

Barclays Maintains Overweight on Magic Software, Raises Price Target to $14

Magic Software Enterprises Ltd&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported a fourth-quarter revenue decline of 14.7% year-on-year to $125.5 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/g37656593/magic-software-reports-fourth-quarter-and-full-year-2023-financial-results" rel="noreferrer noopener">consensus of $117.5 million</a>.
Adjusted EPS of $0.24 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $0.19</a>. The stock price is gained after the results.
The adjusted gross margin expanded by 150 bps to 30.8%. The adjusted operating margin climbed 140 bps to 14.1%.
The company held $107.1 million in cash and equivalents as of December 31, 2023.
Cash flow from operating activities for the year ended December 31, 2023, amounted to $77.9 million compared to $56.6 million Y/Y.
Guy Bernstein, Chief Executive Officer of Magic Software, said: &#8220;Despite the slowdown we faced during the second half of the year resulting from the headwind facing by some of our customers in certain sectors in the U.S., we remain positive that the vast majority of our customers will continue to value our unique proposition and resume to engage us to an increasing degree as a preferred partner for innovative digital transformation initiatives.&#8221;
Outlook:&nbsp;Magic introduced 2024 annual revenue guidance of $540.00 million &#8211; $550.00 million, compared to the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $473.77 million</a>.
Price Action: MGIC shares traded higher by 6.92% at $11.43 premarket on the last check Wednesday.
Photo by Luca Bravo on Unsplash

Movers

IT Consulting Services Firm Magic Software Enterprises Stock Soars On Wednesday - Here's Why

Magic is introducing 2024 annual revenue guidance of between $540 million and $550 million (based on current currency exchange rates). 
Measured against Magic Software&rsquo;s annualized 2023 fourth quarter revenue on a go-forward basis, the 2024 annual revenue guidance reflects an 
annual growth of 7.5% to 9.5%.

Magic Software Enterprises Expects 2024 Revenue of $540M-$550M Vs $493.59M Est

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported quarterly earnings of $0.24 per share which beat the analyst consensus estimate of $0.19 by 26.32 percent. This is a 14.29 percent decrease over earnings of $0.28 per share from the same period last year. The company reported quarterly sales of $125.55 million which beat the analyst consensus estimate of $117.50 million by 6.85 percent. This is a 14.68 percent decrease over sales of $147.15 million the same period last year.

Magic Software Q4 Adj EPS $0.24 Beats $0.19 Estimate, Sales $125.55M Beat $117.50M Estimate

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) is set to give its latest quarterly earnings report on Wednesday, 2024-03-13. Here's what investors need to know before the announcement.
Analysts estimate that Magic Software will report an earnings per share (EPS) of $0.19. 
Magic Software bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company missed EPS by $0.05, which was followed by a 2.18% drop in the share price the next day.
Here's a look at Magic Software's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.26</td>
<td>0.26</td>
<td>0.28</td>
<td>0.26</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.21</td>
<td>0.28</td>
<td>0.26</td>
<td>0.28</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-2.0%</td>
<td>-3.0%</td>
<td>1.0%</td>
<td>-2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1710255723_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Magic Software were trading at $10.52 as of March 11. Over the last 52-week period, shares are down 18.39%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. 
<a href="https://www.benzinga.com/quote/MGIC/earnings">To track all earnings releases for Magic Software visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Preview: Magic Software

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported its Q3 earnings results on Tuesday, November 14, 2023 at 07:47 AM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
Magic Software missed estimated earnings by 19.23%, reporting an EPS of $0.21 versus an estimate of $0.26.
Revenue was down $14.48 million from the same period last year.
<h3>Past Earnings Performance</h3>
Last quarter the company beat on EPS by $0.02 which was followed by a 2.91% drop in the share price the next day.
Here's a look at Magic Software's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.26</td>
<td>0.28</td>
<td>0.26</td>
<td>0.27</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.28</td>
<td>0.26</td>
<td>0.28</td>
<td>0.28</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>142.30M</td>
<td>143.40M</td>
<td>142.98M</td>
<td>131.75M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>137.58M</td>
<td>142.44M</td>
<td>147.15M</td>
<td>143.96M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Magic Software <a href="https://www.benzinga.com/quote/MGIC/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Magic Software: Q3 Earnings Insights

Magic Software Sees Q4 Revenue Of $115M-$125M Vs. $133.65M Est.

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported quarterly adjusted earnings of $0.21 per share which missed the analyst consensus estimate of $0.27 by 22.22 percent. This is a 25 percent decrease over earnings of $0.28 per share from the same period last year. The company reported quarterly sales of $129.48 million which missed the analyst consensus estimate of $146.40 million by 11.55 percent. This is a 10.06 percent decrease over sales of $143.96 million the same period last year.

Magic Software Q3 Adj. EPS $0.21 Misses $0.27 Estimate, Sales $129.48M Miss $146.40M Estimate

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) is set to give its latest quarterly earnings report on Tuesday, 2023-11-14. Here's what investors need to know before the announcement.
Analysts estimate that Magic Software will report an earnings per share (EPS) of $0.27. 
Magic Software bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Past Earnings Performance</h3>
Last quarter the company beat EPS by $0.02, which was followed by a 2.91% drop in the share price the next day.
Here's a look at Magic Software's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.26</td>
<td>0.28</td>
<td>0.26</td>
<td>0.27</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.28</td>
<td>0.26</td>
<td>0.28</td>
<td>0.28</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-2.91%</td>
<td>1.35%</td>
<td>-1.66%</td>
<td>1.01%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1699884104_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Magic Software were trading at $8.65 as of November 10. Over the last 52-week period, shares are down 51.37%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/MGIC/earnings">To track all earnings releases for Magic Software visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Magic Software's Earnings: A Preview

Magic Software shares are trading lower after the company lowered its FY23 sales guidance.

Magic Software Sees Q3 2023 Revenue ~$129.3M Vs $146.4M Estimate, $142.4M-$143.1M Prior

Barclays analyst Tavy Rosner maintains Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) with a Overweight and lowers the price target from $23 to $18.

Barclays Maintains Overweight on Magic Software, Lowers Price Target to $18

Magic is lowering its 2023 annual revenue guidance range from $585 - $593 million to $570 - $580 million. This revenue change is primarily due to exchange rate headwind of NIS versus the US Dollar, as well as the continuous slowdown in IT spending which we are currently experiencing versus 2022 across our operations in North-America impacted by macro environment uncertainty. Based on a constant currency basis of the year 2022, our revenue growth rate for the year 2023 would have been 4.5%-6.2% with revenues at the range of $592 - $602 million.

Magic Software Lowers FY2023 Sales Guidance from $585.00M-593.00M to $570.00M-580.00M Vs. $588.8M Estimate

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported quarterly earnings of $0.28 per share which beat the analyst consensus estimate of $0.26 by 7.69 percent. This is a 16.67 percent increase over earnings of $0.24 per share from the same period last year. The company reported quarterly sales of $137.58 million which missed the analyst consensus estimate of $142.30 million by 3.32 percent. This is a 0.44 percent increase over sales of $136.98 million the same period last year.

Magic Software Q2 Adj. EPS $0.28 Beats $0.26 Estimate, Sales $137.58M Miss $142.30M Estimate

Magic Software (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGIC#NASDAQ">MGIC</a>) reported its Q1 earnings results on Thursday, May 18, 2023 at 06:28 AM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
Magic Software missed estimated earnings by 7.14%, reporting an EPS of $0.26 versus an estimate of $0.28.
Revenue was up $3.73 million from the same period last year.
<h3>Past Earnings Performance</h3>
Last quarter the company beat on EPS by $0.02 which was followed by a 1.66% drop in the share price the next day.
Here's a look at Magic Software's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
<th>Q2 2022</th>
<th>Q1 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.26</td>
<td>0.27</td>
<td>0.27</td>
<td>0.24</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.28</td>
<td>0.28</td>
<td>0.24</td>
<td>0.26</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>142.98M</td>
<td>131.75M</td>
<td>131.70M</td>
<td>128.80M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>147.15M</td>
<td>143.96M</td>
<td>136.98M</td>
<td>138.71M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Magic Software <a href="https://www.benzinga.com/quote/MGIC/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Recap: Magic Software Q1 Earnings

The software sector is flourishing with increasing demand, investment, and rapid technological advancements. Hence, investors could consider investing in promising small-cap software stocks Magic Software (MGIC), Cognyte Software (CGNT), and Yalla (YALA). Read more… As business demand increases, the software industry delves into offering efficient and innovative solutions to grab market share. Recent transformations, such as the adoption of AI and cloud computing, have added more growth opportunities for the industry.
Therefore, it could be wise to invest in small-cap software stocks Magic Software Enterprises Ltd. (<a href="https://stocknews.com/stock/MGIC/">MGIC</a>), Cognyte Software Ltd. (<a href="https://stocknews.com/stock/CGNT/">CGNT</a>), and Yalla Group Limited (<a href="https://stocknews.com/stock/YALA/">YALA</a>), which have the potential to deliver solid returns.
Revenue in the software market is expected to reach $704.10 billion in 2024, with <a href="https://www.statista.com/outlook/tmo/software/worldwide">enterprise software dominating the market</a> with a projected market volume of $295.20 billion in the same period. Further, <a href="https://www.statista.com/outlook/tmo/software/application-development-software/worldwide">the application development software market</a> is expected to be valued at $182.70 billion in 2024 and reach $250.70 billion by 2029, growing at a CAGR of 6.5%.
With rapidly rising business requirements, the enterprise application software market is experiencing robust growth and expansion, driven by <a href="https://eyer.ai/blog/enterprise-application-software-market-trends-for-2024/">trends such as advancements in cloud computing</a>, AI integration, personalized user experience, and emphasis on security and industry-oriented solutions.
Moreover, according to the latest forecast by Gartner, <a href="https://www.gartner.com/en/newsroom/press-releases/2024-07-16-gartner-forecasts-worldwide-it-spending-to-grow-7-point-5-percent-in-2024">worldwide software spending</a> is expected to total $1.1 trillion in 2024, representing an increase of 12.6% from 2023.
Considering these encouraging industry trends, let's delve into the fundamentals of the <a href="https://stocknews.com/category/software-application/">Software – Application</a> stocks mentioned above, beginning with the third choice.
Stock #3: Magic Software Enterprises Ltd. (<a href="https://stocknews.com/stock/MGIC/">MGIC</a>)
Headquartered in Or Yehuda, Israel, MGIC provides proprietary application development, vertical software solutions, business process integration, information technology outsourcing software services, and cloud-based services in Israel and internationally. It operates through Software Services; and IT Professional Services segments.
In terms of forward EV/EBIT, MGIC is trading at 8.18x, 57.2% lower than the industry average of 19.10x. Further, the stock's forward Price/Sales multiple of 0.91 is 66.7% lower than the industry average of 2.72. Similarly, its forward non-GAAP P/E of 10.18x is 55.4% lower than the industry average of 22.82x.
For the first quarter that ended March 31, 2024, MGIC reported revenues of $130.72 million, and its non-GAAP gross profit was $38.31 million. Non-GAAP net income attributable to Magic's shareholders and non-GAAP EPS came in at $11.28 million and $0.23 for the quarter, respectively.
Furthermore, the company's total current assets were $273.75 million as of March 31, 2024, compared to $256.62 million as of December 31, 2023.
Street expects MGIC's revenue for the fourth quarter (ending December 2024) to increase 14.6% year-over-year to $143.90 million. Its EPS for the same quarter is expected to grow 14.4% year-over-year to $0.27. Also, the company has topped the consensus revenue and EPS estimates in three of the four trailing quarters.
Shares of MGIC have surged 16.1% over the past nine months to close the last trading session at $10.04.
MGIC's solid fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
MGIC has an A grade for Value and a B grade for Sentiment, Stability, and Quality. It is ranked #8 out of 132 stocks in the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry.
In addition to the POWR Ratings we've stated above, we also have MGIC's ratings for Momentum and Growth. Get all MGIC ratings <a href="https://stocknews.com/stock/MGIC/">here</a>.
Stock #2: Cognyte Software Ltd. (<a href="https://stocknews.com/stock/CGNT/">CGNT</a>)
Based in Herzliya, Israel, CGNT offers investigative analytics software to governments and enterprises globally. The company's Actionable Intelligence for a Safer World is an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations.
On July 10, CGNT secured a $10 million follow-on order from a national security agency that is a long-term CGNT customer in the Europe-Middle East-Africa (EMEA) region. With the follow-on order, the agency expanded its strategic investment in CGNT's advanced technology to combat a wide range of threats, such as terrorism, drug trafficking, and weapons smuggling.
In terms of forward EV/Sales, CGNT is trading at 1.34x, 50.5% lower than the industry average of 2.71x. Further, the stock's forward Price/Sales of 1.50x is 45% lower than the 2.72x industry average.
During the first quarter that ended April 30, 2024, CGNT's total revenue rose 12.7% year-over-year to $82.71 million. Its non-GAAP gross profit grew 17.1% from the prior year's quarter to $58.79 million. The company's adjusted EBITDA came in at $5.02 million, compared to an adjusted loss of $2.28 million in the previous year's quarter.
In addition, the company's cash and cash equivalents were $98.80 million as of April 30, 2024, versus $74.48 million as of January 31, 2024.
According to the fiscal year 2025 outlook, CGNT expects revenue of $344 million at the midpoint with a range of +/-2%, reflecting 10% growth from its prior year's revenue. Its adjusted EBITDA is expected to be approximately $22 million.
Street expects CGNT's revenue for the second quarter (ending July 2024) to increase 8.6% year-over-year to $83.69 million. For the fiscal year (ending January 2025), the company's revenue is expected to grow 9.6% year-over-year to $343.40 million. Furthermore, CGNT topped the consensus EPS and revenue estimates in all of the trailing four quarters.
CGNT's stock has gained 36.9% over the past year to close the last trading session at $7.16.
CGNT's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
The stock has a B grade for Sentiment, Value, Growth, and Quality. CGNT is ranked #3 among 132 stocks in the Software - Application industry. <a href="https://stocknews.com/stock/CGNT/">Click here</a> to access CGNT's ratings for Stability and Momentum.
Stock #1: Yalla Group Limited (<a href="https://stocknews.com/stock/YALA/">YALA</a>)
Headquartered in Dubai, United Arab Emirates, YALA operates a social networking and gaming platform in the Middle East and North Africa region. The company offers mobile applications like Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application.
In terms of forward non-GAAP P/E, YALA is trading at 5.48x, 57.4% lower than the industry average of 12.84x. Likewise, the stock's forward EV/Sales multiple of 0.25 is 86.9% lower than the industry average of 1.90. Also, its forward Price/Cash Flow of 5.29x is 31.1% lower than the industry average of 7.68x.
YALA's revenues increased 2.5% year-over-year to $81.20 million during the second quarter that ended June 30, 2024. Its non-GAAP operating income rose 13.9% from the year-ago value to $33.51 million. The company's non-GAAP net income of $35.24 million indicates growth of 4.4% from the prior year's quarter, while its non-GAAP EPS was $0.19.
Furthermore, the company's total assets stood at $715.12 million as of June 30, 2024, compared to $638.95 million as of December 31, 2023.
As per the company's outlook for the third quarter of 2024, YALA expects its revenues to be between $75.0 million and $82.0 million.
Analysts expect YALA's revenue for the fiscal year (ending December 2025) to increase 13.3% year-over-year to $366.75 million, and its EPS is expected to grow 10.6% year-over-year to $0.78 for the same year. Moreover, the company has topped the consensus revenue estimates in each of the trailing four quarters, which is impressive.
YALA's stock has plunged 17.3% over the past month to close the last trading session at $3.86.
YALA's POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Value and a B grade for Growth, Stability, Quality, and Sentiment. Within the same industry, YALA tops among the 132 stocks. <a href="https://stocknews.com/stock/YALA/">Click here</a> to access all YALA ratings.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
YALA shares were trading at $3.81 per share on Tuesday afternoon, down $0.05 (-1.30%). Year-to-date, YALA has declined -37.85%, versus a 14.60% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/yala-cgnt-mgic-3-small-cap-software-stocks-with-strong-buy-ratings/>3 Small-Cap Software Stocks with Strong Buy Ratings</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Small-Cap Software Stocks with Strong Buy Ratings

Here's the major earnings before the open tomorrow

Magic Software Non-GAAP EPS of $0.24, revenue of $136.3M

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Magic Software (NASDAQ:<a href="https://investorplace.com/stock-quotes/mgic-stock-quote/">MGIC</a>) just reported results for the second quarter of 2024.<ul><li>Magic Software reported earnings per share of 24 cents. This met the analyst estimate for EPS of 24 cents.</li><li>The company reported revenue of $136.25 million.</li><li>This was 2.68% better than the analyst estimate for revenue of $132.69 million.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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MGIC Stock Earnings: Magic Software Meets EPS, Beats Revenue for Q2 2024

Magic Software Enterprises Ltd. (MGIC) Q2 2024 Earnings Call Transcript

Barclays analyst Tavy Rosner assigned a Buy rating to Magic (MGIC – Research Report) today and set a price target of $14.00. The company's shares c...

Barclays Releases a Buy Rating on Magic (MGIC)

With solid financial performance, strategic alliances, and a unified platform for advanced data protection and cyber resilience, is Commvault Systems (CVLT) poised to be the next big player in cloud security? Read more to find out... Commvault Systems, Inc. (<a href="https://stocknews.com/stock/CVLT/">CVLT</a>) is the gold standard in cyber resilience, safeguarding data for over 100,000 organizations and ensuring their businesses remain resilient and thrive. It provides innovative security and AI features to protect data from cyber threats, modern backup and recovery capabilities, and integration with top cloud providers and security partners.
CVLT reported better-than-expected first-quarter 2024 results. Commvault's total revenue came in at $224.70 million, surpassing analysts' estimate of $215.54 million. Moreover, CVLT recorded a 17% annualized recurring revenue (ARR) year-over-year growth to $803 million, and its subscription ARR rose to $636 million, up 28% year-over-year.
In addition, the company posted non-GAAP net income per share of $0.85, compared to the consensus estimate of $0.73.
Furthermore, Commvault provided updated guidance for the fiscal year 2025. The company expects its total revenues to be between $915 million and $925 million. Its total ARR is expected to increase 15% year-over-year. Its subscription revenue is anticipated to be between $522 million and $527 million, and subscription ARR will grow 23%-25% year-over-year.
For the 13th consecutive time, CVLT was <a href="https://community.commvault.com/news-events-7/13-times-a-gartner-magic-quadrant-leader-for-enterprise-backup-and-recovery-software-solutions-9300">positioned by Gartner as a Leader in the 2024 Magic Quadrant</a> for Enterprise Backup and Recovery Software Solutions based on its completeness of vision and ability to execute. Also, Commvault had been named a "Leader" and "Forward Mover" in the <a href="https://www.commvault.com/gc/gigaom-sonar-report-for-cloud-based-data-protection#:~:text=Commvault%20Named,Forward%20Mover%E2%80%8B&amp;text=The%202024%20GigaOm%20Sonar%20for,leaderboard%20among%2013%20competing%20vendors.">2024 GigaOm Sonar Report</a> for Cloud-Native Data Protection.
Shares of CVLT have gained 57.9% over the past six months and 119.9% over the past year to close the last trading session at $150.41. Also, the stock has surged 20.2% over the past month.
Let's look at factors that could influence CVLT's performance in the upcoming months.
Positive Recent Developments
On August 5, CVLT announced an <a href="https://www.commvault.com/news/commvault-expands-cybersecurity-ecosystem-with-leading-integration-partners#:~:text=TINTON%20FALLS%2C%20NJ%20%E2%80%93%20August%205,Google%20Cloud%2C%20Splunk%2C%20and%20Wiz">expansion of its cyber and data security ecosystem</a> through strategic integrations with several security partners, including Acante, Dasera, Google Cloud, Splunk, and Wiz.
These integrations are crucial in enhancing cyber resilience for joint customers across on-premises, hybrid, and cloud environments, from detecting potential threats or anomalies to identifying the location of sensitive data and speeding up clean recoveries.
On July 31, CVLT announced Microsoft 365 Backup Storage as an integrated component of Commvault&#xAE; Cloud Backup and Recovery for Microsoft 365. The Commvault Cloud platform, powered by Microsoft Azure, enables joint customers to deploy this integrated solution for enhanced cyber resilience while enabling single-pane-of-glass control that simplifies administration and delivers a low total cost of ownership (TCO).
Robust Financials
For the second quarter that ended June 30, 2024, CVLT's revenues increased 13.4% year-over-year to $224.67 million. Its gross margin rose 13.7% from the year-ago value to $184.88 million. Its non-GAAP income from operations grew 11% from the prior year's quarter to $48.30 million.
Additionally, the company's non-GAAP net income and earnings per share were $38.40 million and $0.85, compared to $32.53 million and $0.72 in the previous year's period, respectively. Its non-GAAP <a href="https://www.investopedia.com/terms/f/freecashflow.asp">free cash flow</a> was $43.83 million, up 15.7% year-over-year.
Favorable Analyst Estimates
Analysts expect CVLT's revenue for the second quarter (ending September 2024) to grow 9.9% year-over-year to $220.97 million. The consensus EPS estimate of $0.76 for the ongoing quarter indicates an improvement of 8.2% year-over-year. Further, the company has topped consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
For the fiscal year ending March 2025, Street expects Commvault's revenue and EPS to increase 9.8% and 12.3% from the previous year to $921.31 million and $3.35, respectively. The company's revenue and EPS for the fiscal year 2026 are expected to grow 10% and 15.1% year-over-year to $1.01 billion and $3.85, respectively.
High Profitability
CVLT's trailing-12-month gross profit margin of 82% is 66.1% higher than the industry average of 49.36%. Likewise, the stock's trailing-12-month EBIT margin of 9.86% is 95.5% higher than the industry average of 5.05%. Moreover, its trailing-12-month net income margin of 20.19% is significantly higher than the industry average of 3.63%.
Further, the stock's trailing-12-month ROCE, ROTC, and ROTA of 77.04%, 22.33%, and 18.70% favorably compared to the industry averages of 4.41%, 2.76%, and 2.06%, respectively. Its trailing-12-month levered FCF margin of 24.55% is 132.8% higher than the industry average of 10.54%.
POWR Ratings Reflect Promise
CVLT's sound fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. CVLT has an A grade for Quality, consistent with its higher-than-industry profitability. In addition, the stock has a B grade for Growth and Sentiment, in sync with outstanding financial performance in the last reported quarter and optimistic analyst estimates.
Within the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry, CVLT is ranked #14 out of 129 stocks.
Beyond what I have stated above, we have also given CVLT grades for Value, Momentum, and Stability. Get all CVLT ratings <a href="https://stocknews.com/stock/CVLT/">here</a>.
Bottom Line
CVLT has consistently demonstrated its leadership in the cloud resilience and data protection space, bolstered by robust financial performance and strategic integrations with leading cloud and cybersecurity partners.
What truly sets Commvault apart from its industry peers is its ability to protect a wide range of workloads, deliver enterprise-grade data protection, offer simple and scalable recovery, and uniquely advance cyber resiliency—all within a single, unified platform.
Given outstanding financials, accelerating profitability, and a promising long-term outlook, CVLT could be an ideal buy for solid returns.
How Does Commvault Systems, Inc. (CVLT) Stack Up Against Its Peers?
While CVLT has an overall POWR Rating of B, investors could also check out these other stocks within the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry with an A (Strong Buy) rating: SS&amp;C Technologies Holdings Inc. (<a href="https://stocknews.com/stock/SSNC/">SSNC</a>), MarketWise Inc. (<a href="https://stocknews.com/stock/MKTW/">MKTW</a>), and Magic Software Enterprises Ltd. (<a href="https://stocknews.com/stock/MGIC/">MGIC</a>).
To explore more A or B-rated software stocks, <a href="https://stocknews.com/category/software-application/">click here</a>.
What To Do Next?
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CVLT shares were unchanged in premarket trading Thursday. Year-to-date, CVLT has gained 88.37%, versus a 18.21% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/cvlt-ssnc-mgic-mktw-could-commvault-systems-be-the-next-big-cloud-security-winner/>Could CommVault Systems Be the Next Big Cloud Security Winner?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Could CommVault Systems Be the Next Big Cloud Security Winner?

Magic Software: Compelling Value Despite Israel's Geopolitical Risks

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Press Releases

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