Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group is facing its most significant intraday drop since April after releasing half-year results that did not meet analyst expectations. The decline is mainly due to weaker earnings in its commodities division.
By midday, Macquarie shares fell 6.7% to $202.56, approaching an intraday low of $202.37. This marks the steepest drop since April 4, when shares fell 9% amid wider market turmoil linked to tariff announcements.
Company Profile
Macquarie is a diversified financial group offering asset management, finance, banking, advisory, and risk and capital solutions across debt, equity, and commodities. It operates globally with a strong base in Australia.
Financial Results
Despite the downturn, Macquarie reported a net profit of nearly $1.7 billion, supported by performance fees in its asset management division. However, this was below analysts’ forecasts, who expected a first-half profit of $1.86 billion and an interim dividend of $3.09.
UBS analyst John Storey noted, “The reported result was 10.4 per cent below consensus estimates.”
He also highlighted that the earnings per share (EPS) of $4.37 fell short of expectations by 10.9 per cent.
Overall, Macquarie’s half-year results revealed weaker earnings than anticipated, causing significant market reaction despite a solid profit.
Author’s summary: Macquarie’s shares dropped sharply due to underwhelming half-year earnings, especially in commodities, missing analyst profit and dividend forecasts by over 10%.