Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group faced its sharpest intraday decline since April after releasing half-year results that failed to meet analyst expectations. The slump was mainly due to weaker earnings in its commodities division.
Market Performance
By midday, Macquarie shares had fallen 6.7% to $202.56, approaching an intraday low of $202.37. This marks the largest single-day drop since April 4, when shares tumbled 9% during a broader equity sell-off triggered by tariff announcements.
Company Overview
Macquarie is a diversified financial group offering clients services in asset management, banking, advisory, and risk and capital markets across both debt and equity sectors. The company maintains a strong operational base in Australia and operates on a global scale.
Financial Results and Analyst Response
Despite the downturn, Macquarie recorded a net profit of nearly $1.7 billion, supported by solid performance fees from its asset management unit. However, this result fell short of forecasts that expected $1.86 billion in profit and a $3.09 interim dividend.
UBS analyst John Storey noted that the reported results were 10.4% below consensus estimates, with earnings per share of $4.37 missing projections by 10.9%.
Summary
Macquarie’s weaker commodities performance led to its steepest stock decline in months, as lower-than-expected earnings dampened investor sentiment despite continued profitability.
Author’s summary: Macquarie shares sharply declined after its half-year results underperformed against analyst forecasts, revealing persistent pressure in the commodities division.