Update: Magic Software Earnings - Sales Up 17%, Confirms Forward Guidance
Martin Vlcek • Tue, Aug. 12
- Revenues continue rising, 17% Y/Y. Margins decreased slightly and EPS was flat Y/Y due to the 11% share dilution from secondary offering. Allstate temporarily hurt by AT&T Direct TV merger.
- My thesis worked well on continued growth. In six months, the stock returned over 60% as it hit my most optimistic target almost precisely. It later retreated after secondary offering.
- I confirm my long thesis and my target price. I see MGIC at $9.89 again within a year as growth continues, offering a ~35% upside.