Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group is facing its largest intraday drop since April after releasing half-year results that missed 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. Such a drop is the steepest since April 4, when shares dropped 9% amid market volatility following tariff announcements.
Company Overview
Macquarie is a diversified financial group offering asset management, finance, banking, advisory, and capital solutions across debt, equity, and commodities. The company operates globally, with a strong base in Australia.
Financial Performance
Despite the decline, Macquarie reported a net profit close to $1.7 billion, supported by performance fees from its asset management unit. However, this fell short of analysts' forecast of $1.86 billion and an interim dividend prediction of $3.09.
UBS analyst John Storey noted: "The reported result was 10.4 per cent below consensus estimates."
Additionally, earnings per share (EPS) of $4.37 missed expectations by 10.9%.
Summary
Macquarie’s weaker-than-expected earnings emphasize challenges in its commodities division despite solid asset management revenues, leading to a substantial stock price drop.
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