Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group experienced its largest intraday decline since April, following half-year results below analyst expectations. Shares fell 6.7% to $202.56, nearing an intraday low of $202.37.
This drop marks the steepest since April 4, when shares fell 9% amid broad market turmoil triggered by tariff announcements.
Performance Overview
Macquarie is a diversified financial group offering asset management, finance, banking, advisory, and capital solutions globally, with a solid base in Australia.
Despite the share price drop, Macquarie reported a net profit close to $1.7 billion, supported by strong performance fees in its asset management division.
Analyst Expectations and Market Reaction
- Analysts had forecasted a first-half profit of $1.86 billion and an interim dividend of $3.09.
- The actual net profit was 10.4% below consensus estimates.
- Earnings per share (EPS) stood at $4.37, missing expectations by 10.9%.
UBS analyst John Storey noted the result was significantly below estimates, highlighting the gap between forecasts and reported profit.
The key reason for the disappointing results was weaker earnings in Macquarie's commodities division.
Summary
Macquarie’s half-year results fell short of market expectations, leading to a substantial share price decline despite strong asset management performance.
Author’s summary: Macquarie Group’s shares dropped sharply due to earnings misses, mainly from its commodities sector, despite nearly $1.7 billion in net profit.