Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group experienced its sharpest intraday drop since April, following half-year results that failed to meet analyst expectations. This decline was mainly due to weaker earnings in its commodities division.
Shares fell 6.7% to $202.56 near midday, approaching an intraday low of $202.37. Such a steep fall was last seen on April 4, when the company's stock dropped 9% amid wider market turmoil triggered by tariff announcements.
About Macquarie Group
Macquarie Group is a diversified financial services provider with operations in asset management, finance, banking, advisory, risk, and capital solutions across debt, equity, and commodities. The company operates globally with a strong base in Australia.
Financial Performance Highlights
- Reported net profit: nearly $1.7 billion
- Profit supported by performance fees in asset management
- Missed analyst forecasts expecting $1.86 billion profit and $3.09 interim dividend
- Earnings per share (EPS): $4.37, falling 10.9% short of expectations
UBS analyst John Storey stated the results were "10.4 per cent below consensus estimates."
Summary
Macquarie’s half-year earnings disappointed analysts due to weaker commodities profits, causing the stock to plummet despite a solid underlying net profit.