Magic Software stock hits 52-week high at 20.85 USD

Magic Software (ETR:SOWGn) Enterprises Ltd (NASDAQ:MGIC) reached a notable milestone as its stock hit a 52-week high of 20.85 USD, with InvestingPro data showing the company’s market capitalization now exceeds $1 billion. This achievement underscores a significant upward trajectory for the company, reflected in its remarkable 107.8% increase over the past year. The surge in stock price highlights investor confidence, supported by a healthy 8.75% revenue growth and a consistent 14-year dividend payment history. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with 13 additional ProTips available for subscribers. As the company continues to expand its offerings and strengthen its market position, stakeholders remain optimistic about its future potential, with analysts projecting profitability for the coming year. Discover comprehensive insights and detailed valuation metrics in the exclusive Pro Research Report, available on InvestingPro.

In other recent news, Magic Software Enterprises Ltd. reported its first-quarter 2025 financial results, revealing a mixed performance. The company achieved a revenue of $147.3 million, which surpassed analyst expectations of $143.79 million and marked a 12.7% increase year-over-year. However, its adjusted earnings per share fell slightly short, coming in at $0.25, missing estimates by $0.01. Despite this earnings miss, the company maintained its revenue guidance for 2025, projecting between $593 million and $603 million, indicating anticipated annual growth of 7.3% to 9.1%. The company also reported a non-GAAP operating income of $18.5 million, a slight increase from the previous year, although its operating margin declined to 12.6% from 13.9%. Cash flow from operations was noted at $14.9 million, a decrease from the $27.7 million recorded in the same quarter last year. As of the end of March, Magic Software held $105 million in cash and deposits. CEO Guy Bernstein highlighted the company’s strategic growth and market expansion efforts, particularly in Israel and signs of recovery in the United States.

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