Macquarie Shares Drop Sharply After Half-Year Results Disappoint
Macquarie Group experienced its largest intraday share decline since April after releasing half-year results that missed analyst expectations. The main factor behind the dip was weaker earnings from the commodities division.
Share Price Movement
By midday, Macquarie shares fell 6.7% to $202.56, approaching an intraday low of $202.37. This was the steepest decline since April 4, when shares dropped 9% amid market unrest caused by tariff announcements.
Company Overview
Macquarie is a diversified global financial group headquartered in Australia, providing asset management, banking, advisory, and risk and capital solutions across debt, equity, and commodities.
Financial Results Summary
- Reported net profit: nearly $1.7 billion
- Profit supported by asset management performance fees
- Missed analyst expectations of $1.86 billion profit
- Interim dividend forecast was $3.09 but not confirmed
- Earnings per share (EPS) of $4.37 fell short of estimates
Analyst Commentary
UBS analyst John Storey noted the reported profit was 10.4% below consensus estimates and the EPS missed expectations by 10.9%.
Despite solid net profit, Macquarie's results fell short of market expectations, mainly due to the commodities segment's underperformance.
Summary: Macquarie faced its largest share price drop since April, driven by below-forecast half-year earnings, particularly in commodities, reflecting challenges despite steady overall profits.