Macquarie Shares Drop Sharply After Half-Year Results
Macquarie Group experienced its largest one-day share decline since April, following half-year results that disappointed analysts. The main factor behind the drop was weaker earnings from the commodities division.
By midday, Macquarie shares fell 6.7% to $202.56, approaching an intraday low of $202.37. This decline was the steepest since April 4, when shares dropped 9% amid market turmoil triggered by tariff announcements.
Company Overview
Macquarie is a diversified financial group providing asset management, banking, finance, advisory, risk, and capital solutions across debt, equity, and commodities. The firm operates globally and is strongly rooted in Australia.
Financial Results and Analyst Reaction
Despite the sell-off, Macquarie reported a net profit of nearly $1.7 billion, supported by performance fees from its asset management business. However, this fell short of analyst expectations, which predicted a first-half profit of $1.86 billion and an interim dividend of $3.09 per share.
UBS analyst John Storey stated, "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 shares declined sharply due to underwhelming earnings in commodities and missed profit forecasts, despite solid net profit supported by asset management fees.