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OR YEHUDA, Israel - On Wednesday, Magic Software (ETR:SOWGn) Enterprises Ltd. (NASDAQ:MGIC) reported first quarter 2025 results that exceeded revenue expectations but fell short on earnings per share.
The company’s stock was unchanged in pre-market trading following the earnings release.
The IT consulting and software solutions provider posted Q1 revenue of $147.3 million, up 12.7% YoY and above the analyst consensus of $143.79 million. However, adjusted earnings per share came in at $0.25, missing estimates by $0.01.
"We commenced 2025 with strong momentum, successfully advancing our strategic growth initiatives and executing agreements with both new and existing customers," said Guy Bernstein, CEO of Magic Software. "Our financial performance reflects continued expansion in the Israeli market, alongside early indications of recovery in the United States."
The company reported Q1 non-GAAP operating income of $18.5 million, up 1.9% from $18.1 million in the same period last year. Operating margin declined to 12.6% from 13.9% a year ago.
Magic Software reiterated its 2025 revenue guidance of $593 million to $603 million, representing annual growth of 7.3% to 9.1% compared to the prior year.
Cash flow from operations in Q1 was $14.9 million, down from $27.7 million in the year-ago quarter. As of March 31, the company had $105 million in cash and deposits.
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