Macquarie Shares Plunge After Disappointing Half-Year Result
Macquarie Group experienced its largest intraday drop since April following half-year results that missed analyst expectations. The decline was mainly driven by weaker earnings from its commodities division.
Near midday, Macquarie shares fell 6.7% to $202.56, approaching an intraday low of $202.37. This drop represents the steepest decline since April 4, when the shares dropped 9% amid broader market turmoil linked to tariff announcements.
Company Overview
Macquarie is a diversified financial group offering asset management, finance, banking, advisory, risk, and capital solutions across debt, equity, and commodities. The company operates globally but has a solid base in Australia.
Financial Performance
Despite the share price fall, Macquarie reported a net profit close to $1.7 billion, supported by strong performance fees in its asset management division. However, this result fell short of analysts’ forecasts, which expected a first-half profit of $1.86 billion and an interim dividend of $3.09.
UBS analyst John Storey noted, "The reported result was 10.4 per cent below consensus estimates."
Additionally, the earnings per share (EPS) of $4.37 was 10.9 per cent lower than expected.
Overall, the results highlight a notable shortfall compared to market expectations, mainly due to the weaker commodities segment.
Author's summary: Macquarie's half-year profit missed expectations, causing its shares to drop sharply, with commodities division weakness central to the decline.