Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Macquarie Group Ltd    MQG   AU000000MQG1

News SummaryMost relevantAll newsSector newsTweets 

Macquarie Shares Slump on Profit Outlook

share with twitter share with LinkedIn share with facebook
share via e-mail
02/05/2013 | 12:05am CET

--Macquarie predicts 10% rise in profits in fiscal 2013

--Shares slump 4.4% as forecast misses expectations

--Bank says market conditions still "subdued"

SYDNEY--Shares in Macquarie Group Ltd. (>> Macquarie Group Limited) slumped 4.4% Tuesday after Australia's largest investment bank disappointed investors with its forecast of a 10% rebound in earnings for this financial year.

Chief Executive Nicholas Moore forecast profits would increase in fiscal 2013 thanks to "strongly" higher earnings from its market-facing divisions--Fixed Income, Currencies and Commodities, Macquarie Securities and Macquarie Capital businesses--which dragged its profits down almost a quarter last year.

If achieved, a 10% increase would take Macquarie's profits for the year ending March 31 to 803 million Australian dollars (US$838 million), up from A$730 million in fiscal 2012. That's below a market consensus of around A$832 million, according to five analysts surveyed by Dow Jones Newswires.

The prediction dashed hopes in some corners of the market that Macquarie would benefit from the same trends that have buoyed results at U.S. peers such as Goldman Sachs. Bank of America Merrill Lynch analyst Matthew Davison last month predicted Macquarie's mergers and acquisitions business was on track for its strongest six months of completed deals in two years in the second half of fiscal 2013, thanks to its U.S., Asia Pacific and European divisions.

That expectation, as well as growing optimism about the health of the global economy, has helped to boost Macquarie's shares by 65% since late July, taking them to a two-year high of A$39.29 as of last Friday. Shares plunged as much as 4.4% to A$36.97 in early trade Tuesday.

"No doubt financials in Australia have been trending upwards on a more favourable environment," said Matt Sherwood, head of Investment Market Research at fund manager Perpetual Ltd. (>> Perpetual Limited), which manages A$24.3 billion of funds. "A slightly better economic environment won't camouflage every stressed financial institution for investors."

But others were more bullish. Credit Suisse analysts said in a note to clients that Macquarie remains attractive as a long-term investment because of its "leverage to the increasingly likely recovery in financial market activity in fiscal 2014 and fiscal 2015."

Deals such as the listing of Macquarie's Mexican property fund and the sale of Wales and West Utilities to a Hong Kong consortium led by billionaire Li Ka-shing are expected to help profits at Macquarie's Capital division in the three months to Dec. 31, Macquarie said in the stock exchange filing. Energy markets and credit trading are also expected to support profits at its FICC division, where costs have been cut about 10% since the third quarter of 2012.

"It is continuing to be difficult to complete M&A transactions," Mr. Moore told investors. "There's still a gap between what sellers want and what buyers are expecting to pay."

Write to Caroline Henshaw at caroline.henshaw@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : Macquarie Group Limited, Perpetual Limited
share with twitter share with LinkedIn share with facebook
share via e-mail
02/21 South Africa grants Barclays Africa immunity in FX rigging probe
02/19 TAKAFUL INTERNATIONAL BSC : Top insurance forum to open
02/17 MACQUARIE : Predica Acquires 40% Stake in PISTO from Macquarie Group
02/15DJMACQUARIE : Can't Skirt Bond Insurer's $496 Million Toll Road Suit
02/13 Australia's Endeavour Energy attracts at least three indicative offers - sour..
02/08 MACQUARIE : Aquarion seeks nominations for environmental award
02/07 CITIGROUP : Aquilon Energy Services Secures USD19 Million in Series B Funding
02/06DJMACQUARIE : Continues to Expect Steady Annual Profit
02/06 MACQUARIE : 2017 Operational Briefing
02/03 TE CONNECTIVITY : Tel) Shares Bought by S&Co Inc.
More news
Sector news : Diversified Investment Services
02/23 South Africa's Barclays Africa CEO 'deeply regrets' role in FX rigging
02/23DJCREDIT SUISSE : Under Investigation -- WSJ
02/23 Banks' bond trading up in 2016 for first time since 2012 after Brexit, Trump ..
02/23DJCREDIT SUISSE : Under Investigation for Aiding Tax Evasion at Israeli Unit
More sector news : Diversified Investment Services
News from SeekingAlpha
02/08 Macquarie Group's (MCQEF) on Operational Briefing Broker Conference (Transcri..
2016 Glencore set to hit debt goal with sale of Aussie coal haulage ops
2016 RESOURCE SECTOR DIGEST : Pardon Our French!
2016 Invesco Global Low Volatility Equity Yield Fund A (GTNDX) April Summary
2016 Invesco Global Low Volatility Equity Yield Fund A (GTNDX) March Summary
Financials ( AUD)
Sales 2017 10 237 M
EBIT 2017 3 069 M
Net income 2017 2 146 M
Debt 2017 -
Yield 2017 4,94%
P/E ratio 2017 14,06
P/E ratio 2018 13,49
Capi. / Sales 2017 2,87x
Capi. / Sales 2018 2,79x
Capitalization 29 376 M
More Financials
Duration : Period :
Macquarie Group Ltd Technical Analysis Chart | MQG | AU000000MQG1 | 4-Traders
Full-screen chart
Technical analysis trends MACQUARIE GROUP LTD
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 87,6  AUD
Spread / Average Target 1,5%
Consensus details
EPS Revisions
More Estimates Revisions
Nicholas William Moore Chief Executive Officer, MD & Executive Director
Peter H. Warne Independent Chairman
Nicole Sorbara COO & Head-Operations Group
Patrick Upfold CFO & Head-Financial Management Group
Justin Raoul Moffitt Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CITIC LTD0.90%42 590
NATIXIS-3.92%17 046
INVESTEC PLC7.28%7 194
More Results