Magic beats analysts estimates with higher Q2 profit

Guy Bernstein Photo: PR

Magic CEO: Our strategic business initiatives are paying off.

Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) share's price rose 4% yesterday (but is down 2% today) after reporting second quarter results with profit that was above the analysts' expectations, although revenue was lower than predicted.

Magic, which provides business software application and integration solutions, has a market cap of $429 million. The company reported revenue of $70.2 million, up 7.2% from the corresponding quarter of 2017 but below the analysts' expectations of $72.3 million. First half revenue was $140 million, up 10.9% from the first half of 2017.

GAAP net profit in the second quarter of 2018 was $5.7 million, up from $3.6 million. First half profit was $10.3 million, up 31.2% from the first half of 2017. Non-GAAP profit was $7 million up 21.8% from the corresponding quarter, Earnings per share was $0.16, $0.01 higher than the analysts' consensus. First half non-GAAP profit was $13.2 million compared with $11.5 million in the first half of 2017.

Magic CEO Guy Bernstein said, “This quarter’s strong financial results demonstrate that Magic is continuing its impressive forward momentum with growth in both revenues and profits across all of our markets and regions. Our record-breaking first half results for 2018 confirm that our strategic business initiatives are paying off."

Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Guy Bernstein Photo: PR
Guy Bernstein Photo: PR
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