Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group faced its largest intraday drop since April following half-year results that fell short of analyst expectations. The decline was driven mainly by weaker earnings from its commodities division.
By midday, Macquarie shares had fallen 6.7% to $202.56, approaching the intraday low of $202.37. This represents the steepest single-day fall since April 4, when shares dropped 9% amid market turmoil triggered by tariff announcements.
Company Overview
Macquarie is a diversified financial group offering asset management, banking, advisory, and risk and capital solutions across debt, equity, and commodities 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 result fell short of analysts' expectations.
- Expected first-half profit: $1.86 billion
- Interim dividend forecast: $3.09 per share
UBS analyst John Storey noted, "The reported result was 10.4 per cent below consensus estimates."
The earnings per share (EPS) of $4.37 missed expectations by 10.9 per cent.
Such a gap in forecast versus actual results contributed to the sharp share price decline.
Summary
Macquarie’s half-year profits missed analyst forecasts significantly, primarily due to weaker commodity earnings, triggering its largest share price drop in over seven months.
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