Macquarie Shares Slump
Macquarie Group’s shares slid after the company predicted full-year profit of more than $1 billion that fell short of the amount analysts had been tipping.
The investment bank today said second-half earnings could be up as much as 10 per cent over the first half as economic conditions around the world continue to trend back to normal.
Macquarie maintained its trademark caution, saying it expects profit for the six months to end-March to be broadly flat on its first-half profit of $479 million after taking into account a number of one-off items, such as acquisition costs and impairment charges, offset by a windfall from the sale of management rights from its listed funds.
The company also cautioned equity and credit market conditions had moderated from the buoyant conditions of the six months to September, even as economic conditions continued the return to normal.
Macquarie shares suffered their biggest intraday fall in more than eight months, dropping as much as 6.2 per cent, or $3.14, to $47.21 in early trade which sliced about $1 billion from its market capitalisation.
Tags: 1 Billion, Acquisition Costs, Caution, Earnings, Economic Conditions, Eight Months, Impairment Charges, Investment Bank, Management Rights, Market Capitalisation, Shares, Six Months, Slump, Trademark, Windfall
Posted in Money
No Comments