Macquarie Shares Drop Sharply After Half-Year Earnings Disappoint
Macquarie Group has suffered its largest intraday share decline since April, following the release of half-year results that failed to meet analyst expectations. The main driver of the drop was weaker-than-expected earnings in its commodities division.
By midday, shares fell 6.7% to $202.56, approaching an intraday low of $202.37. This represents the steepest decline since April 4, when the stock dropped 9% amid broader market turmoil linked to tariff announcements.
Company Profile and Performance
Macquarie Group is a diversified financial institution offering asset management, finance, banking, advisory, risk, and capital solutions across debt, equity, and commodities sectors. The firm operates globally with a strong base in Australia.
Despite the share price drop, the company reported a net profit close to $1.7 billion, supported by strong performance fees in its asset management division. However, this profit fell short of analyst forecasts of $1.86 billion and an interim dividend estimate of $3.09 per share.
Analyst Commentary
UBS analyst John Storey noted the results were "10.4 per cent below consensus estimates."
He also flagged the earnings per share (EPS) of $4.37 as missing expectations by 10.9 per cent.
Summary
Macquarie's half-year results underwhelmed investors due to weaker commodities earnings and lower-than-expected profits, prompting the sharpest share decline in several months despite solid asset management performance.
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