Macquarie Shares Drop Sharply After Disappointing Half-Year Results
Macquarie Group faced its largest intraday decline since April due to half-year results that fell short of analyst forecasts. The main reason was weaker earnings in its commodities division.
By midday, Macquarie shares had dropped 6.7% to $202.56, approaching an intraday low of $202.37. This marked the sharpest fall since April 4, when shares declined 9% amid broader market turmoil triggered by tariff announcements.
Company Overview
Macquarie is a diversified financial group offering asset management, finance, banking, advisory, risk, and capital solutions in debt, equity, and commodities. It operates globally with a strong presence in Australia.
Financial Performance Details
Despite the decline, Macquarie reported a net profit close to $1.7 billion, supported by performance fees in its asset management division. However, this missed analysts’ expectations, which forecasted a first-half profit of $1.86 billion and an interim dividend of $3.09.
UBS analyst John Storey commented, "The reported result was 10.4 per cent below consensus estimates."
"Earnings per share (EPS) of $4.37 missed expectations by 10.9 per cent," he added.
Summary
Macquarie’s half-year results reveal challenges, especially in commodities, leading to a notable stock selloff despite solid profits supported by asset management performance fees.
Author’s summary: Macquarie's half-year profits fell short of expectations, triggering the steepest share price drop since April, mainly due to weaker earnings from its commodities division.